<PAGE>
File No. 33-47216
811-6632
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-4
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Post-Effective Amendment No. 14
----
REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940
Amendment No. 16
----
Allmerica Select Separate Account of Allmerica Financial Life Insurance And
Annuity Company
---------------------------------------------------------------------------
(Exact Name of Trust)
Allmerica Financial Life Insurance and Annuity Company
------------------------------------------------------
440 Lincoln Street
Worcester, Massachusetts 01653
(508) 855-1000
--------------
(Registrant's telephone number including area code)
Abigail M. Armstrong, Secretary and Counsel
Allmerica Financial Life Insurance and Annuity Company
440 Lincoln Street
Worcester, Massachusetts 01653
(Name and complete address of agent for service)
It is proposed that this filing will become effective:
immediately upon filing pursuant to paragraph (b)
-----
X on February 1, 1998 pursuant to paragraph (b)
-----
60 days after filing pursuant to paragraph(a)(1)
-----
on (date) pursuant to paragraph (a)(1)
-----
on (date) pursuant to paragraph (a)(2) of Rule 485
-----
this post-effective amendment designates a new effective date for a
----- previously filed post-effective amendment
VARIABLE ANNUITY POLICIES
Pursuant to Reg. Section 270.24f-2 of the Investment Company Act of 1940,
Registrant hereby declares that an indefinite amount of its securities is being
registered under the Securities Act of 1933. The Rule 24f-2 Notice for the
issuer's fiscal year ended December 31, 1997 will be filed on or before
February 27, 1998.
<PAGE>
CROSS REFERENCE SHEET SHOWING LOCATION IN PROSPECTUS OF
ITEMS CALLED FOR BY FORM N-4
FORM N-4 ITEM NO. CAPTION IN PROSPECTUS
- ----------------- ---------------------
1. . . . . . . . . Cover Page
2. . . . . . . . . Special Terms
3. . . . . . . . . Summary; Annual and Transaction Expenses
4. . . . . . . . . Condensed Financial Information; Performance Information
5. . . . . . . . . Description of the Company, the Variable Account, the Trust,
Fidelity VIP, and T. Rowe Price
6. . . . . . . . . Charges and Deductions
7. . . . . . . . . Description of the Contract
8. . . . . . . . . Electing the Form of Annuity and the Annuity Date;
Description of Variable Annuity Option; Annuity Benefit
Payments
9. . . . . . . . . Death Benefit
10 . . . . . . . . Payments; Computation of Values; Distribution
11 . . . . . . . . Surrender; Withdrawals; Charge for Surrender and
Withdrawal; Withdrawal Without Surrender Charge; Texas
Optional Retirement Program
12 . . . . . . . . Federal Tax Considerations
13 . . . . . . . . Legal Matters
14 . . . . . . . . Statement of Additional Information - Table of Contents
FORM N-4 ITEM NO. CAPTION IN STATEMENT OF ADDITIONAL INFORMATION
- ----------------- ----------------------------------------------
15 . . . . . . . . Cover Page
16 . . . . . . . . Table of Contents
17 . . . . . . . . General Information and History
18 . . . . . . . . Services
19 . . . . . . . . Underwriters
21 . . . . . . . . Performance Information
22 . . . . . . . . Annuity Payments
23 . . . . . . . . Financial Statements
<PAGE>
This Post-effective Amendment No. 14 under the Securities Act of 1933 is being
filed for the purposes of adding a supplement to the prospectus and Statement of
Additional Information of Allmerica Select Separate Account of Allmerica
Financial Life Insurance and Annuity Company dated May 1, 1997 and to generally
update corporate information for the Company and the Registrant in Part C. All
other pertinent information regarding this Registration Statement, including the
prospectus and Statement of Additional Information was previously filed in
Registrant's Post-effective Amendment No. 12 on April 30, 1997 and is
incorporated by reference herein.
<PAGE>
ALLMERICA SELECT SEPARATE ACCOUNT
ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
------------------------------------------------------
SUPPLEMENT TO PROSPECTUS DATED MAY 1, 1997
***
Effective February 1, 1998, one additional Sub-Account will be available under
the Contract. The Sub-Account will invest exclusively in shares of the Select
Value Opportunity Fund of Allmerica Investment Trust. As such, the following
information supplements the corresponding sections of the Prospectus. Please
consult the Prospectus for the full text of each supplemented section.
Under "4. INVESTMENT OPTIONS" on page P-2 of the Profile, the listing of funds
is revised as follows:
<TABLE>
<CAPTION>
Fund Investment Adviser
---- ------------------
<S> <C> <C>
International Funds Select International Equity Fund Bank of Ireland Asset
Management (U.S.) Limited
T. Rowe Price International Stock Rowe Price-Fleming
Portfolio International, Inc.
Aggressive Growth Funds Select Aggressive Growth Fund Nicholas-Applegate Capital Management, L.P.
Select Capital Appreciation Fund Janus Capital Corporation
Select Value Opportunity Fund Cramer Rosenthal McGlynn, LLC
Growth Funds Select Growth Fund Putnam Investment Management, Inc.
Fidelity VIP Growth Portfolio Fidelity Management and Research Company
Growth and Income Select Growth and Income Fund John A. Levin & Co., Inc.
Funds Fidelity VIP Equity-Income Portfolio Fidelity Management and Research Company
High Income Fund Fidelity VIP High Income Portfolio Fidelity Management and Research Company
Income Fund Select Income Fund Standish, Ayer & Wood, Inc.
Money Market Fund Money Market Fund Allmerica Asset Management, Inc.
</TABLE>
Under "5. EXPENSES" in the Profile, the table on page P-3 is deleted and
replaced with the following table as of 12/31/97 (unaudited):
1
<PAGE>
<TABLE>
<CAPTION>
EXAMPLES:
TOTAL ANNUAL
EXPENSES AT
END OF
------------
TOTAL ANNUAL TOTAL ANNUAL TOTAL ANNUAL (1) (2)
FUND INSURANCE CHARGES FUND CHARGES CHARGES 1 YEAR 10 YEARS
- ---- ----------------- ------------ ------------ ------ --------
<S> <C> <C> <C> <C> <C>
Select International Equity Fund 1.44% 1.12% 2.56% $86 $286
T. Rowe Price International Stock Portfolio 1.44% 1.05% 2.49% $85 $279
Select Aggressive Growth Fund 1.44% 0.98% 2.42% $84 $272
Select Capital Appreciation Fund 1.44% 1.10% 2.54% $85 $284
Select Value Opportunity 1.44% 1.04% 2.48% $85 $278
Select Growth Fund 1.44% 0.93% 2.37% $84 $267
Fidelity VIP Growth Portfolio 1.44% 0.69% 2.13% $81 $243
Select Growth and Income Fund 1.44% 0.77% 2.21% $82 $251
Fidelity VIP Equity-Income Portfolio 1.44% 0.58% 2.02% $80 $231
Fidelity VIP High Income Portfolio 1.44% 0.71% 2.15% $82 $245
Select Income Fund 1.44% 0.71% 2.15% $82 $245
Money Market Fund 1.44% 0.35% 1.79% $78 $207
</TABLE>
For more detailed information, see the Fund Expense Table in the Contract
Prospectus.
"8. PERFORMANCE" on pages P-3 and P-4 of the Profile is deleted in its entirety
and replaced by the following:
8. PERFORMANCE
The value of your contract will vary up or down depending on the investment
performance of the funds you choose. The following chart illustrates past
returns for the funds since the inception of each Sub-Account. The performance
figures reflect the contract fee, the insurance charges, the investment charges
and all other expenses of the fund. They do not reflect the surrender charges
which, if applied, would reduce such performance. Past performance is not a
guarantee of future results.
<TABLE>
<CAPTION>
CALENDAR YEAR
-----------------------------------------------------------
FUND 1997 1996 1995 1994 1993
(unaudited)
- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
Select International Equity Fund 3.16% 20.20% 17.94% -4.30% N/A
T. Rowe Price International Stock Portfolio 1.63% 12.99% 9.57% N/A N/A
Select Aggressive Growth Fund 17.03% 16.85% 30.44% -3.52% 17.82%
Select Capital Appreciation Fund 12.66% 7.24% N/A N/A N/A
Select Value Opportunity Fund N/A N/A N/A N/A N/A
Select Growth Fund 32.18% 20.27% 22.83% -2.95% -0.32%
Fidelity VIP Growth Portfolio 21.74% 13.06% 33.41% N/A N/A
Select Growth and Income Fund 20.79% 19.53% 28.50% -0.78% 8.81%
Fidelity VIP Equity-Income Portfolio 26.30% 12.64% 33.15% N/A N/A
Fidelity VIP High Income Portfolio 16.01% 12.40% 18.98% N/A N/A
Select Income Fund 7.62% 1.82% 15.31% -6.16% 9.35%
Money Market Fund 3.97% 3.83% 4.33% 2.51% 1.55%
</TABLE>
2
<PAGE>
The following is added to the list of funds under the second paragraph of page
1 of the Prospectus:
Fund Investment Adviser
---- ------------------
SELECT VALUE OPPORTUNITY FUND CRAMER ROSENTHAL MCGLYNN, LLC
The definition of "UNDERLYING FUNDS (OR FUNDS)" on page 4 of the Prospectus is
revised to add "Select Value Opportunity Fund" as the fifth Fund.
The number "eleven" is changed to "twelve" in the first and second sentence
under "WHAT ARE MY INVESTMENT CHOICES?" on page 7 of the Prospectus and the
following is added as the fifth Fund in the second sentence:
- Select Value Opportunity Fund
Managed by Cramer Rosenthal McGlynn, LLC
The second paragraph under "WHO ARE THE INVESTMENT ADVISERS OF THE FUNDS AND HOW
ARE THEY SELECTED?" on page 8 of the Prospectus is amended to read in its
entirety as follows:
Allmerica Investment Management Company, Inc. ("Manager"), an
affiliate of the Company, is the investment manager of the Trust.
The Manager has entered into agreements with investment advisers
("Sub-Advisers") selected by the Manager and Trustees in
consultation with RogersCasey. The Sub-Advisers (other than
Allmerica Asset Management, Inc.) are not affiliated with the
Company or the Trust. In addition, Rogers, Casey Sponsor
Services, Inc. a wholly owned subsidiary of RogersCasey, provides
asset allocation recommendations that may be utilized at no cost
by registered representatives who are assisting clients in
developing diversified portfolios.
The following is added to the list in the fifth paragraph under "WHO ARE THE
INVESTMENT ADVISERS OF THE FUNDS AND HOW ARE THEY SELECTED?"
SELECT VALUE OPPORTUNITY FUND CRAMER ROSENTHAL MCGLYNN, LLC
The Fund Expenses table on page 11 of the Prospectus is deleted and the
following inserted in its place:
FUND EXPENSES: The following table shows the expenses (unaudited) of the
Underlying Funds as a percentage of average net assets for the year ended
December 31, 1997.
3
<PAGE>
<TABLE>
<CAPTION>
OTHER FUND
MANAGEMENT EXPENSES (AFTER ANY TOTAL FUND
FUND FEE APPLICABLE REIMBURSEMENTS) EXPENSES
- ---- ---------- -------------------------- ----------
<S> <C> <C> <C>
Select International Equity Fund . . . . . . . . . . . . . . . . 0.92%* 0.20%(1) 1.12%(3)
T. Rowe Price International Stock Portfolio. . . . . . . . . . . 1.05% 0.00% 1.05%
Select Aggressive Growth Fund. . . . . . . . . . . . . . . . . . 0.89%* 0.09%(1) 0.98%(3)
Select Capital Appreciation Fund . . . . . . . . . . . . . . . . 0.95%* 0.15%(1) 1.10%
Select Value Opportunity . . . . . . . . . . . . . . . . . . . . 0.90%** 0.14%**(1) 1.04%(3)
Select Growth Fund . . . . . . . . . . . . . . . . . . . . . . . 0.85% 0.08%(1) 0.93%(3)
Fidelity VIP Growth Portfolio. . . . . . . . . . . . . . . . . . 0.60% 0.09% 0.69%(2)
Select Growth and Income Fund. . . . . . . . . . . . . . . . . . 0.70%* 0.07%(1) 0.77%(3)
Fidelity VIP Equity-Income Portfolio . . . . . . . . . . . . . . 0.50% 0.08% 0.58%(2)
Fidelity VIP High Income Portfolio . . . . . . . . . . . . . . . 0.59% 0.12% 0.71%
Select Income Fund . . . . . . . . . . . . . . . . . . . . . . . 0.58%* 0.13%(1) 0.71%
Money Market Fund. . . . . . . . . . . . . . . . . . . . . . . . 0.27% 0.08%(1) 0.35%
</TABLE>
* Effective September 1, 1997, the management fee rates for these funds
were revised. The management fees ratios shown in the table above have been
adjusted to assume that the revised rates took effect on January 1, 1997.
** The Select Value Opportunity Fund was formerly known as the "Small-Mid
Cap Value Fund." Effective April 1, 1997, the management fee rate of the
former Small-Mid Cap Value Fund was revised. In addition, effective April 1,
1997 and until further notice, the management fee for this fund has been
voluntarily limited to an annual rate of 0.90% of average daily net assets.
The management fee ratio shown above for the Select Value Opportunity Fund
has been adjusted to assume that the revised rate and the voluntary
limitation took effect on January 1, 1997. Had the voluntary limitation of
0.90% not been effective on January 1, 1997 and had the management fee rate
revision discussed above been effective on January 1, 1997, the management fee
ratio and the total fund expense ratio would have been 0.95% and 1.09%,
respectively.
(1) Until further notice, under the Management Agreement with Allmerica
Investment Trust, Allmerica Investment Management Company, Inc. ("Manager")
has declared a voluntary expense limitation of 1.50% of average net assets
for Select International Equity Fund, 1.35% for Select Aggressive Growth Fund
and Select Capital Appreciation Fund, 1.25% for Select Value Opportunity
Fund, 1.20% for Select Growth Fund, 1.10% for Select Growth and Income Fund,
1.00% for Select Income Fund, and 0.60% for the Money Market Fund. The total
operating expenses of the funds of the Trust were less than their respective
expense limitations throughout 1997. The declaration of a voluntary expense
limitation in any year does not bind Allmerica Investments to declare future
expense limitations with respect to these funds.
(2) A portion of the brokerage commissions the Portfolio paid was used to reduce
Fund expenses. Including these reductions, total operating expenses would have
been .57% for the Fidelity VIP Equity-Income Portfolio and .67% for the Fidelity
VIP Growth Portfolio.
(3) These Funds have entered into agreements with brokers whereby the brokers
rebate a portion of commissions. Had these amounts been treated as reductions of
expenses the total operating expenses would have been 1.10% for Select
International Equity Fund, 0.91% for Select Growth Fund and 0.94% for
Select Growth and Income Fund, 0.93% for Select Aggressive Growth and 0.98%
for Select Value Opportunity Fund.
The expense tables on pages 12 and 13 of the Prospectus are deleted and
replaced with the following tables as of 12/31/97 (unaudited):
4
<PAGE>
<TABLE>
<CAPTION>
(1) 1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
<S> <C> <C> <C> <C>
Select International Equity Fund. . . . . . . . . . . . . $86 $127 $164 $286
T. Rowe Price International Stock Portfolio . . . . . . . $85 $125 $161 $279
Select Aggressive Growth Fund . . . . . . . . . . . . . . $84 $123 $157 $272
Select Capital Appreciation Fund. . . . . . . . . . . . . $85 $126 $163 $284
Select Value Opportunity Fund . . . . . . . . . . . . . . $85 $125 $160 $278
Select Growth Fund. . . . . . . . . . . . . . . . . . . . $84 $122 $155 $267
Fidelity VIP Growth Portfolio . . . . . . . . . . . . . . $81 $115 $143 $243
Select Growth and Income Fund . . . . . . . . . . . . . . $82 $117 $147 $251
Fidelity VIP Equity-Income Portfolio. . . . . . . . . . . $80 $112 $137 $231
Fidelity VIP High Income Portfolio. . . . . . . . . . . . $82 $115 $144 $245
Select Income Fund. . . . . . . . . . . . . . . . . . . . $82 $115 $144 $245
Money Market Fund . . . . . . . . . . . . . . . . . . . . $78 $105 $125 $207
</TABLE>
<TABLE>
<CAPTION>
(2) 1 Year 3 Years 5 Years 10 Years
------ ------- ------- --------
<S> <C> <C> <C> <C>
Select International Equity Fund. . . . . . . . . . . . . $26 $79 $134 $286
T. Rowe Price International Stock Portfolio . . . . . . . $25 $77 $131 $279
Select Aggressive Growth Fund . . . . . . . . . . . . . . $24 $74 $127 $272
Select Capital Appreciation Fund. . . . . . . . . . . . . $25 $78 $133 $284
Select Value Opportunity Fund . . . . . . . . . . . . . . $25 $76 $130 $278
Select Growth Fund. . . . . . . . . . . . . . . . . . . . $24 $73 $125 $267
Fidelity VIP Growth Portfolio . . . . . . . . . . . . . . $21 $66 $113 $243
Select Growth and Income Fund . . . . . . . . . . . . . . $22 $68 $117 $251
Fidelity VIP Equity-Income Portfolio. . . . . . . . . . . $20 $62 $107 $231
Fidelity VIP High Income Portfolio. . . . . . . . . . . . $22 $66 $104 $245
Select Income Fund. . . . . . . . . . . . . . . . . . . . $22 $66 $114 $245
Money Market Fund . . . . . . . . . . . . . . . . . . . . $18 $55 $95 $207
</TABLE>
The performance tables on page 16 of the prospectus are deleted and replaced
with the following tables updated through December 31, 1997 based upon 1997
unaudited numbers and are revised to include information regarding the
Select Value Opportunity Fund, formerly the Small-Mid Cap Value Fund,
whose inception date was 4/30/93:
5
<PAGE>
TABLE 1
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDING DECEMBER 31, 1997
SINCE INCEPTION OF SUB-ACCOUNT
(ASSUMING COMPLETE WITHDRAWAL OF THE INVESTMENT)
<TABLE>
<CAPTION>
FOR YEAR SINCE
ENDED INCEPTION
12/31/97 OF
SUB-ACCOUNT INVESTING IN UNDERLYING FUND (unaudited) 5 YEARS SUB-ACCOUNT
- ---------------------------------------- -------- ------- -----------
<S> <C> <C> <C>
Select International Equity Fund . . . . . . . . . . . . . . . . -2.87% N/A 8.71%
T. Rowe Price International Stock Portfolio. . . . . . . . . . . -4.32% N/A 6.13%
Select Aggressive Growth Fund. . . . . . . . . . . . . . . . . . 10.53% 14.81% 17.88%
Select Capital Appreciation Fund . . . . . . . . . . . . . . . . 6.16% N/A 19.82%
Select Value Opportunity Fund. . . . . . . . . . . . . . . . . . N/A N/A N/A
Select Growth Fund . . . . . . . . . . . . . . . . . . . . . . . 25.68% 13.22% 14.66%
Fidelity VIP Growth Portfolio. . . . . . . . . . . . . . . . . . 15.24% N/A 20.62%
Select Growth and Income Fund. . . . . . . . . . . . . . . . . . 14.29% 14.58% 13.65%
Fidelity VIP Equity-Income Portfolio . . . . . . . . . . . . . . 19.80% N/A 20.47%
Fidelity VIP High Income Portfolio . . . . . . . . . . . . . . . 9.51% N/A 12.80
Select Income Fund . . . . . . . . . . . . . . . . . . . . . . . 1.32% 4.84% 4.73%
Money Market Fund. . . . . . . . . . . . . . . . . . . . . . . . -2.11% 2.69% 2.84%
</TABLE>
TABLE 2
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDING DECEMBER 31, 1997
SINCE INCEPTION OF SUB-ACCOUNT
(ASSUMING NO WITHDRAWAL OF THE INVESTMENT)
<TABLE>
<CAPTION>
FOR YEAR SINCE
ENDED INCEPTION
12/31/97 OF
SUB-ACCOUNT INVESTING IN UNDERLYING FUND (unaudited) 5 YEARS SUB-ACCOUNT
- ---------------------------------------- -------- ------- -----------
<S> <C> <C> <C>
Select International Equity Fund . . . . . . . . . . . . . . . . 3.16% N/A 9.58%
T. Rowe Price International Stock Portfolio. . . . . . . . . . . 1.63% N/A 7.80%
Select Aggressive Growth Fund. . . . . . . . . . . . . . . . . . 17.03% 15.15% 18.06%
Select Capital Appreciation Fund . . . . . . . . . . . . . . . . 12.66% N/A 21.19%
Select Value Opportunity Fund. . . . . . . . . . . . . . . . . . N/A N/A N/A
Select Growth Fund . . . . . . . . . . . . . . . . . . . . . . . 32.18% 13.58% 14.87%
Fidelity VIP Growth Portfolio. . . . . . . . . . . . . . . . . . 21.74% N/A 21.97%
Select Growth and Income Fund. . . . . . . . . . . . . . . . . . 20.79% 14.92% 13.87%
Fidelity VIP Equity-Income Portfolio . . . . . . . . . . . . . . 26.30% N/A 21.83%
Fidelity VIP High Income Portfolio . . . . . . . . . . . . . . . 16.01% N/A 14.31%
Select Income Fund . . . . . . . . . . . . . . . . . . . . . . . 7.62% 5.34% 5.04%
Money Market Fund. . . . . . . . . . . . . . . . . . . . . . . . 3.97% 3.22% 3.17%
</TABLE>
6
<PAGE>
TABLE 1
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDING DECEMBER 31, 1997
SINCE INCEPTION OF UNDERLYING FUND
(ASSUMING COMPLETE WITHDRAWAL OF THE INVESTMENT)
<TABLE>
<CAPTION>
FOR YEAR SINCE
ENDED INCEPTION OF
12/31/97 UNDERLYING
NAME OF UNDERLYING FUND (unaudited) 5 YEARS FUND*
- ----------------------- -------- ------- ------------
<S> <C> <C> <C>
Select International Equity Fund . . . . . . . . . . . . . . . . -2.87% N/A 8.68%
T. Rowe Price International Stock Portfolio. . . . . . . . . . . -4.32% N/A 5.61%
Select Aggressive Growth Fund. . . . . . . . . . . . . . . . . . 10.53% 14.81% 17.67%
Select Capital Appreciation Fund . . . . . . . . . . . . . . . . 6.16% N/A 19.76%
Select Value Opportunity Fund. . . . . . . . . . . . . . . . . . 16.56% N/A 14.87%
Select Growth Fund . . . . . . . . . . . . . . . . . . . . . . . 25.68% 13.22% 14.49%
Fidelity VIP Growth Portfolio. . . . . . . . . . . . . . . . . . 15.24% 15.97% 15.51%
Select Growth and Income Fund. . . . . . . . . . . . . . . . . . 14.29% 14.58% 13.49%
Fidelity VIP Equity-Income Portfolio . . . . . . . . . . . . . . 19.80% 18.13% 15.04%
Fidelity VIP High Income Portfolio . . . . . . . . . . . . . . . 9.51% 11.89% 11.19%
Select Income Fund . . . . . . . . . . . . . . . . . . . . . . . 1.32% 4.84% 4.67%
Money Market Fund. . . . . . . . . . . . . . . . . . . . . . . . -2.11% 2.69% 4.27%
</TABLE>
TABLE 2
AVERAGE ANNUAL TOTAL RETURNS FOR PERIODS ENDING DECEMBER 31, 1997
SINCE INCEPTION OF UNDERLYING FUND
(ASSUMING NO WITHDRAWAL OF THE INVESTMENT)
<TABLE>
<CAPTION>
FOR YEAR SINCE
ENDED INCEPTION OF
12/31/97 UNDERLYING
NAME OF UNDERLYING FUND (unaudited) 5 YEARS FUND*
- ----------------------- -------- ------- ------------
<S> <C> <C> <C>
Select International Equity Fund . . . . . . . . . . . . . . . . 3.16% N/A 9.54%
T. Rowe Price International Stock Portfolio. . . . . . . . . . . 1.63% N/A 6.51%
Select Aggressive Growth Fund. . . . . . . . . . . . . . . . . . 17.03% 15.15% 17.85%
Select Capital Appreciation Fund . . . . . . . . . . . . . . . . 12.66% N/A 21.13%
Select Value Opportunity Fund. . . . . . . . . . . . . . . . . . 24.81% N/A 16.89%
Select Growth Fund . . . . . . . . . . . . . . . . . . . . . . . 32.18% 13.58% 14.70%
Fidelity VIP Growth Portfolio. . . . . . . . . . . . . . . . . . 21.74% 16.30% 15.51%
Select Growth and Income Fund. . . . . . . . . . . . . . . . . . 20.79% 14.92% 13.70%
Fidelity VIP Equity-Income Portfolio . . . . . . . . . . . . . . 26.30% 18.43% 15.04%
Fidelity VIP High Income Portfolio . . . . . . . . . . . . . . . 16.01% 12.27% 11.19%
Select Income Fund . . . . . . . . . . . . . . . . . . . . . . . 7.62% 5.34% 4.98%
Money Market Fund. . . . . . . . . . . . . . . . . . . . . . . . 3.97% 3.22% 4.27%
</TABLE>
* The inception dates for the Underlying Funds are 1/25/94 for Select
International Equity Fund; 3/31/94 for T. Rowe Price International Stock
Portfolio; 8/21/92 for Select Aggressive Growth Fund; 4/28/95 for Select
Capital Appreciation Fund; 4/30/93 for Select Value Opportunity Fund;
8/21/92 for Select Growth Fund; 10/09/86 for Fidelity VIP Growth Portfolio;
8/21/92 for Select Growth and Income Fund; 10/09/86 for Fidelity VIP
Equity-Income Portfolio; 9/19/85 for Fidelity VIP High Income Portfolio;
8/21/92 for Select Income Fund; 4/29/85 for Money Market Fund.
7
<PAGE>
The following summary of investment objectives and policies is added as the
fifth summary under "INVESTMENT OBJECTIVES AND POLICIES" beginning on page 18 of
the Prospectus:
SELECT VALUE OPPORTUNITY FUND -- seeks long-term growth of
capital by investing primarily in a diversified portfolio of
common stocks of small and mid-size companies, whose securities
at the time of purchase are considered by the Sub-Adviser to be
undervalued. The Sub-Adviser is Cramer Rosenthal McGlynn, LLC.
The following information is added to the last paragraph under "INVESTMENT
ADVISORY SERVICES" on page 19 and 20 of the Prospectus:
For the Select Value Opportunity Fund, the Manager fee will be
1.00% for net asset value up to $100,000,000; 0.85% on the next
$150,000,000; 0.80% on the next $250,000,000; 0.75% on the next
$250,000,000 and 0.70% on the remainder.
The following information is added to the Sub-Adviser fee table on page 20 of
the Prospectus:
<TABLE>
<CAPTION>
FUND SUB-ADVISER NET ASSET VALUE RATE
- ---- -------------- --------------- ----
<S> <C> <C> <C>
Select Value Opportunity Cramer Rosenthal McGlynn, LLC First $100 million 0.60%
Next $150 million 0.50%
Next $250 million 0.40%
Next $250 million 0.375%
Over $750 million 0.35%
</TABLE>
The Allmerica Select Resource I expense tables in paragraph 7 of Appendix D are
deleted and replaced by the following tables as of 12/31/97 (unaudited):
<TABLE>
<CAPTION>
(a) With Surrender Charge 1 Year 3 Years 5 Years 10 Years
- ------------------------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
Select International Equity Fund . . . . . . . . . . . . . $86 $128 $166 $288
T. Rowe Price International Stock. . . . . . . . . . . . . $85 $126 $163 $281
Select Aggressive Growth Fund. . . . . . . . . . . . . . . $85 $124 $159 $274
Select Capital Appreciation Fund . . . . . . . . . . . . . $86 $127 $165 $286
Select Value Opportunity Fund. . . . . . . . . . . . . . . $85 $125 $161 $280
Select Growth Fund . . . . . . . . . . . . . . . . . . . . $84 $122 $157 $269
Fidelity VIP Growth Portfolio. . . . . . . . . . . . . . . $82 $115 $145 $245
Select Growth and Income Fund. . . . . . . . . . . . . . . $83 $118 $149 $253
Fidelity VIP Equity-Income Portfolio . . . . . . . . . . . $81 $112 $140 $233
Fidelity VIP High Income Portfolio . . . . . . . . . . . . $82 $116 $146 $247
Select Income Fund . . . . . . . . . . . . . . . . . . . . $82 $116 $146 $247
Money Market Fund. . . . . . . . . . . . . . . . . . . . . $79 $106 $128 $209
</TABLE>
8
<PAGE>
<TABLE>
<CAPTION>
(b) Without Surrender Charge 1 Year 3 Years 5 Years 10 Years
- ------------------------- ------ ------ ------- --------
<S> <C> <C> <C> <C>
Select International Equity Fund . . . . . . . . . . . . . $26 $79 $135 $288
T. Rowe Price International Stock. . . . . . . . . . . . . $25 $77 $132 $281
Select Aggressive Growth Fund. . . . . . . . . . . . . . . $24 $75 $128 $274
Select Capital Appreciation Fund . . . . . . . . . . . . . $26 $79 $134 $286
Select Value Opportunity Fund. . . . . . . . . . . . . . . $25 $77 $131 $280
Select Growth Fund . . . . . . . . . . . . . . . . . . . . $24 $74 $126 $269
Fidelity VIP Growth Portfolio. . . . . . . . . . . . . . . $22 $66 $114 $245
Select Growth and Income Fund. . . . . . . . . . . . . . . $22 $69 $118 $253
Fidelity VIP Equity-Income Portfolio . . . . . . . . . . . $20 $63 $108 $233
Fidelity VIP High Income Portfolio . . . . . . . . . . . . $22 $67 $115 $247
Select Income Fund . . . . . . . . . . . . . . . . . . . . $22 $67 $115 $247
Money Market Fund. . . . . . . . . . . . . . . . . . . . . $18 $56 $96 $209
</TABLE>
***
The following paragraph is added at the end of "D. TRANSFER PRIVILEGE" on pages
22 and 23 of the Prospectus:
ASSET ALLOCATION MODEL REALLOCATIONS - If an Owner elects to
follow an asset allocation strategy, the Owner may preauthorize
transfers in accordance with the chosen strategy. The Company
may provide administrative or other support services to
independent third parties who provide recommendations as to such
allocation strategies. However, the Company does not engage any
third parties to offer investment allocation services of any type
under this Contract, does not endorse or review any investment
allocation recommendations made by such third parties and is not
responsible for the investment allocations and transfers
transacted on the Owner's behalf. The Company does not charge
for providing additional asset allocation support services.
Additional information concerning asset allocation programs for
which the Company is currently providing support services may be
obtained from a registered representative or the Company.
Supplement Dated February 1, 1998
9
<PAGE>
ALLMERICA SELECT SEPARATE ACCOUNT
ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
SUPPLEMENT TO STATEMENT OF ADDITIONAL INFORMATION
DATED MAY 1, 1997
***
The third and fourth paragraphs of page 2 under "GENERAL INFORMATION AND
HISTORY" are revised in their entirety to read as follows:
Currently, 12 Sub-Accounts of the Variable Account are available under
the Contract. Each Sub-Account invests in a corresponding investment
portfolio of Allmerica Investment Trust ("Trust"), Variable Insurance
Products Fund ("Fidelity VIP") or T. Rowe Price International Series,
Inc. ("T. Rowe Price").
The Trust, Fidelity VIP and T. Rowe Price are open-end, diversified
management investment companies. Eight different funds of the Trust
are available under the Contract: Select International Equity Fund,
Select Aggressive Growth Fund, Select Capital Appreciation Fund,
Select Value Opportunity Fund, Select Growth Fund, Select Growth and
Income Fund, Select Income Fund and Money Market Fund. Three of the
portfolios of Fidelity VIP are available under the Contract: Fidelity
VIP High Income Portfolio, Fidelity VIP Equity-Income Portfolio and
Fidelity VIP Growth Portfolio. One portfolio of T. Rowe Price is
available under the Contract: the T. Rowe Price International Stock
Portfolio. Each Fund, Portfolio and Series available under the
Contract (together, the "Underlying Funds") has its own investment
objectives and certain attendant risks.
The following is added as the third paragraph under "Experts" on page 3:
The financial statements of the Company and the Allmerica Select
Separate Account for the period ending September 30, 1997 included
herewith are unaudited.
The first sentence under "YIELD AND EFFECTIVE YIELD-MONEY MARKET SUB-ACCOUNT"
is deleted and replaced by the following: Set forth below is yield and
effective yield information for the Money Market Sub-Account for the seven-day
period ended December 31, 1997 (unaudited):
Yield 4.95%
Effective Yield 5.08%
Footnote 14 under "Notes to Financial Statements" on page F-17 is deleted and
replaced in its entirety with the following:
<PAGE>
14. SUBSEQUENT EVENTS (UNAUDITED)
On April 14, 1997, the Company entered into an agreement in principle
to transfer the Company's individual disability income business under
a 100% coinsurance agreement to Metropolitan Life Insurance Company.
The coinsurance agreement became effective October 1, 1997. The
transaction has resulted in the recognition of a $53.9 million pre-tax
loss in the first quarter of 1997.
In late July 1997, a lawsuit was instituted in Louisiana against
Allmerica Financial Corporation and certain of its subsidiaries,
including the Company, by individual plaintiffs alleging fraud, unfair
or deceptive acts, breach of contracts, misrepresentation and related
claims in the sale of life insurance policies. In October 1997,
plaintiffs voluntarily dismissed the Louisiana suit and refiled the
action in Federal District Court in Worcester, Massachusetts. The
plaintiffs seek to be certified as a class. The case is in the early
stages of discovery and the Company is evaluating the claims,
Although the Company believes it has meritorious defenses to
plaintiffs' claims, there can be no assurance that the claims will be
resolved on a basis which is satisfactory to the Company.
Supplement Dated February 1, 1998
<PAGE>
FINANCIAL STATEMENTS
ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
(AN INDIRECT WHOLLY OWNED SUBSIDIARY OF ALLMERICA FINANCIAL CORPORATION)
STATEMENTS OF INCOME
(UNAUDITED)
NINE MONTHS ENDED SEPTEMBER 30,
(In millions) 1997 1996
- -------------------------------------------------------------------------------
REVENUES
Premiums. . . . . . . . . . . . . . . . . . . . . . $ 23.3 $ 25.2
Universal life and investment product policy fees . 156.4 129.5
Net investment income . . . . . . . . . . . . . . . 125.8 129.3
Net realized investment losses. . . . . . . . . . . (2.9) (5.7)
Other income. . . . . . . . . . . . . . . . . . . . 0.6 0.3
-------- --------
Total revenues. . . . . . . . . . . . . . . . . . 303.2 278.6
-------- --------
BENEFITS, LOSSES AND EXPENSES
Policy benefits, claims, losses and loss adjustment
expenses . . . . . . . . . . . . . . . . . . . . . 147.2 143.5
Policy acquisition expenses . . . . . . . . . . . . 38.0 36.7
Loss from cession of disability income business . . 53.9 -
Other operating expenses. . . . . . . . . . . . . . 71.6 63.6
-------- --------
Total benefits, losses and expenses. . . . . . . 310.7 243.8
-------- --------
(Loss) income before federal income taxes. . . . . . . (7.5) 34.8
-------- --------
FEDERAL INCOME TAX EXPENSE (BENEFIT)
Current.. . . . . . . . . . . . . . . . . . . . . . 5.9 18.3
Deferred. . . . . . . . . . . . . . . . . . . . . . (8.1) (8.6)
-------- --------
Total federal income tax (benefit) expense . . . . . . (2.2) 9.7
-------- --------
Net (loss) income. . . . . . . . . . . . . . . . . . . $ (5.3) $ 25.1
-------- --------
-------- --------
The accompanying notes are an integral part of these financial statements.
<PAGE>
ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
(AN INDIRECT WHOLLY OWNED SUBSIDIARY OF ALLMERICA FINANCIAL CORPORATION)
STATEMENTS OF SHAREHOLDERS' EQUITY
(UNAUDITED)
NINE MONTHS ENDED SEPTEMBER 30,
(In millions) 1997 1996
- -------------------------------------------------------------------------------
COMMON STOCK
Balance at beginning and end of period . . . . . . . $ 2.5 $ 2.5
-------- --------
ADDITIONAL PAID-IN CAPITAL
Balance at beginning and end of period . . . . . . . 346.3 324.3
-------- --------
RETAINED EARNINGS
Balance at beginning of period . . . . . . . . . . . 176.4 144.7
Net (loss) income. . . . . . . . . . . . . . . . . . ( 5.3) 25.1
-------- --------
Balance at end of period . . . . . . . . . . . . . . 171.1 169.8
-------- --------
NET UNREALIZED APPRECIATION ON INVESTMENTS
Balance at beginning of period . . . . . . . . . . . 20.5 23.8
Net appreciation (depreciation) on available-for-sale
securities. . . . . . . . . . . . . . . . . . 21.7 ( 20.4)
(Provision) benefit for deferred federal income taxes (7.6) 7.2
-------- --------
Balance at end of period . . . . . . . . . . . . . . 34.6 10.6
-------- --------
Total shareholders' equity. . . . . . . . . . . $ 554.5 $ 507.2
-------- --------
-------- --------
The accompanying notes are an integral part of these financial statements.
<PAGE>
ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
(AN INDIRECT WHOLLY OWNED SUBSIDIARY OF ALLMERICA FINANCIAL CORPORATION)
BALANCE SHEETS
<TABLE>
<CAPTION>
(UNAUDITED)
SEPTEMBER 30, DECEMBER 31,
(In millions) 1997 1996
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Investments:
Fixed maturities-at fair value (amortized cost of $1,425.0 and $1,660.2) $ 1,486.6 $ 1,698.0
Equity securities-at fair value (cost of $33.4 and $33.0) . . . . . . . 51.9 41.5
Mortgage loans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 213.7 221.6
Real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14.8 26.1
Policy loans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138.1 131.7
Other long-term investments . . . . . . . . . . . . . . . . . . . . . . 0.1 7.9
---------- ----------
Total investments . . . . . . . . . . . . . . . . . . . . . . . . . 1,905.22 2,126.8
---------- ----------
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . 18.3 18.8
Accrued investment income . . . . . . . . . . . . . . . . . . . . . . . 34.8 37.7
Deferred policy acquisition costs . . . . . . . . . . . . . . . . . . . 676.0 632.7
Reinsurance receivable on paid and unpaid losses,
benefits and unearned premiums. . . . . . . . . . . . . . . . . . 75.0 72.5
Other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 210.1 8.2
Separate account assets . . . . . . . . . . . . . . . . . . . . . . . . 7,040.6 4,524.0
---------- ----------
Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,960.0 $ 7,420.7
---------- ----------
---------- ----------
LIABILITIES
Policy liabilities and accruals:
Future policy benefits. . . . . . . . . . . . . . . . . . . . . . . . . $ 2,136.8 $ 2,163.0
Outstanding claims, losses and loss adjustment expenses . . . . . . . . 16.5 15.4
Unearned premiums . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.6 2.7
Contractholder deposit funds and other policy liabilities . . . . . . . 36.4 32.8
---------- ----------
Total policy liabilities and accruals. . . . . . . . . . . . . . . 2,192.3 2,213.9
---------- ----------
Expenses and taxes payable. . . . . . . . . . . . . . . . . . . . . . . 117.9 77.3
Deferred federal income taxes . . . . . . . . . . . . . . . . . . . . . 54.7 60.2
Separate account liabilities. . . . . . . . . . . . . . . . . . . . . . 7,040.6 4,523.6
---------- ----------
Total liabilities . . . . . . . . . . . . . . . . . . . . . . . . . 9,405.5 6,873.0
---------- ----------
Commitments and contingencies
SHAREHOLDERS' EQUITY
Common stock, $1,000 par value, 10,000 shares authorized, 2,518 shares
issued and outstanding. . . . . . . . . . . . . . . . . . . . . . . . . 2.5 2.5
Additional paid-in capital . . . . . . . . . . . . . . . . . . . . . . . 346.3 346.3
Unrealized appreciation on investments, net. . . . . . . . . . . . . . . 34.6 20.5
Retained earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . 171.1 176.4
---------- ----------
Total shareholders' equity . . . . . . . . . . . . . . . . . . . . . . 554.5 545.7
---------- ----------
Total liabilities and shareholders' equity. . . . . . . . . . . . . $ 9,960.0 $ 7,420.7
---------- ----------
---------- ----------
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
(AN INDIRECT WHOLLY OWNED SUBSIDIARY OF ALLMERICA FINANCIAL CORPORATION)
STATEMENTS OF CASH FLOWS (UNAUDITED)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
(In millions) 1997 1996
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net (loss) income. . . . . . . . . . . . . . . . . . . . . . . $ (5.3) $ 25.1
Adjustments to reconcile net (loss) income to net cash from
operating activities:
Net realized losses. . . . . . . . . . . . . . . . . . . . . . . . 2.9 5.7
Net amortization and depreciation. . . . . . . . . . . . . . . . . 0.2 2.9
Deferred federal income taxes. . . . . . . . . . . . . . . . (8.1) (8.6)
Change in deferred acquisition costs . . . . . . . . . . . . . . . (58.7) (36.8)
Change in accrued investment income. . . . . . . . . . . . . . . . 2.9 (2.0)
Change in policy liabilities and accruals, net . . . . . . . . . . (20.8) (38.4)
Change in reinsurance receivable . . . . . . . . . . . . . . . . . (2.6) (3.7)
Change in expenses and taxes payable . . . . . . . . . . . . . . . 29.6 46.5
Separate account activity, net . . . . . . . . . . . . . . . . . . 0.4 10.8
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.4 (4.0)
-------- -------
Net cash used in operating activities . . . . . . . . . . . . . (59.1) (2.5)
-------- -------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from disposals and maturities of available-for-sale fixed
maturities. . . . . . . . . . . . . . . . . . . . . . . . . . . . 602.2 643.1
Proceeds from disposals of equity securities . . . . . . . . . . . . 2.1 1.2
Proceeds from disposals of other investments . . . . . . . . . . . . 19.4 10.7
Proceeds from mortgages matured or collected . . . . . . . . . . . . 40.5 16.4
Purchase of available-for-sale fixed maturities. . . . . . . . . . . (562.6) (698.7)
Purchase of equity securities. . . . . . . . . . . . . . . . . . . . (1.9) (12.8)
Purchase of other investments. . . . . . . . . . . . . . . . . . . . (41.1) (21.9)
-------- -------
Net cash provided by (used in) investing activities . . . . . . 58.6 (62.0)
-------- -------
CASH FLOWS FROM FINANCING ACTIVITIES
Change in short term debt. . . . . . . . . . . . . . . . . . . . . . -- 63.2
-------- -------
Net cash provided by financing activities. . . . . . . . . . . . . -- 63.2
-------- -------
Net change in cash and cash equivalents . . . . . . . . . . . . . . . (0.5) (1.3)
Cash and cash equivalents, beginning of period. . . . . . . . . . . . 18.8 17.3
-------- -------
Cash and cash equivalents, end of period. . . . . . . . . . . . . . . $ 18.3 $ 16.0
-------- -------
-------- -------
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
(AN INDIRECT WHOLLY OWNED SUBSIDIARY OF ALLMERICA FINANCIAL CORPORATION)
NOTES TO INTERIM FINANCIAL STATEMENTS
1. Organization and Basis of Presentation
Allmerica Financial Life Insurance and Annuity Company ("Allmerica Financial"
or the "Company") is a wholly owned subsidiary of SMA Financial Corp., which
is wholly owned by First Allmerica Financial Life Insurance Company ("First
Allmerica"), a stock life insurance company. First Allmerica is a wholly
owned subsidiary of Allmerica Financial Corporation ("AFC"). The
stockholder's equity of the Company is being maintained at a minimum level of
5% of general account assets by First Allmerica in accordance with a policy
established by vote of First Allmerica's Board of Directors.
The accompanying unaudited financial statements of Allmerica Financial have
been prepared in accordance with generally accepted accounting principles for
stock life insurance companies for interim financial information. The
Company began preparing financial statements in accordance with generally
accepted accounting principles for the nine months ended September 31, 1996.
Adjustments to conform with generally accepted accounting principles are not
available on a quarterly basis prior to September 30, 1996. Accordingly,
quarterly comparative amounts for the quarters ended September 30, 1996 and
1997 are not presented.
The accompanying interim financial statements reflect, in the opinion of the
Company's management, all adjustments, consisting of only normal and
recurring adjustments, necessary for a fair presentation of the financial
position and results of operations. The results of operations for the nine
months ended September 30, 1997 are not necessarily indicative of the results
to be expected for the full year. These financial statements should be read
in conjunction with the Company's 1996 annual audited financial statements.
In June 1997, the FASB issued Statement of Financial Accounting Standards No.
130, "Reporting Comprehensive Income" (FAS No. 130). FAS No. 130 established
standards for the reporting and display of comprehensive income and its
components in a full set of general-purpose financial statements. All items
that are required to be recognized under accounting standards as components
of comprehensive income are to be reported in a financial statement that is
displayed with the same prominence as other financial statements. This
statement stipulates that comprehensive income reflect the change in equity
of an enterprise during a period from transactions and other events and
circumstances from non-owner sources. Comprehensive income will thus
represent the sum of net income and other comprehensive income, although FAS
No. 130 does not require the use of the terms comprehensive income or other
comprehensive income. The accumulated balance of other comprehensive income
shall be displayed separately from retained earnings and additional paid-in
capital in the statement of financial position. This statement is effective
for fiscal years beginning after December 15, 1997. The Company anticipates
that the adoption of FAS No. 130 will result primarily in reporting
unrealized gains and losses on investments in debt and equity securities in
comprehensive income.
2. Significant Transactions
On April 14, 1997, the Company entered into an agreement in principle to
transfer the Company's individual disability income business under a 100%
coinsurance agreement to Metropolitan Life Insurance Company. The
coinsurance agreement became effective October 1, 1997. The transaction has
resulted in the recognition of a $53.9 million pre-tax loss in the first
quarter of 1997.
3. Federal Income Taxes
Federal income tax expense for the nine months ended September 30, 1997 and
1996, have been computed using estimated effective tax rates. These rates
are revised, if necessary, at the end of each successive interim period to
reflect the current estimates of the annual effective tax rates.
4. Commitments and Contingencies
In late July 1997, a lawsuit was instituted in Louisiana against AFC and
certain of its subsidiaries, by individual plaintiffs alleging fraud, unfair
or deceptive acts, breach of contract, misrepresentation and related claims
in the sale of life insurance policies. In October 1997, plaintiffs
voluntarily dismissed the Louisiana suit and refiled the action in Federal
District Court in Worcester, Massachusetts. The plaintiffs seek to be
certified as a class. The case is in the early stages of discovery and the
Company is evaluating the claims. Although the Company believes it has
meritorious defenses to plaintiffs' claims, there can be no assurance that
the claims will be resolved on a basis which is satisfactory to the Company.
<PAGE>
ALLMERICA SELECT SEPARATE ACCOUNT
STATEMENTS OF ASSETS AND LIABILITIES
STATEMENTS OF ASSETS AND LIABILITIES (CONTINUED)
SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SELECT
AGGRESSIVE SELECT SELECT GROWTH SELECT
GROWTH GROWTH AND INCOME INCOME
----------- ------------- ------------- -------------
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
VA301 VA302 VA303 VA304
----------- ------------- ------------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in shares of Allmerica Investment Trust. . . . . . . . . . $ 203,645,472 $ 183,263,224 $ 196,680,013 $87,715,601
Investments in shares of Fidelity Variable Insurance Products Fund . . - - - -
Investment in shares of T. Rowe Price International Series, Inc. . . . - - - -
Receivable from Allmerica Financial Life Insurance and
Annuity Company (Sponsor). . . . . . . . . . . . . . . . . . . . . . - - - -
------------- ------------- ------------- -----------
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . . 203,645,472 183,263,224 196,680,013 87,715,601
LIABILITIES:
Payable to Allmerica Financial Life Insurance and
Annuity Company (Sponsor). . . . . . . . . . . . . . . . . . . . . . - - - -
------------- ------------- ------------- -----------
Net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 203,645,472 $ 183,263,224 $ 196,680,013 $87,715,601
------------- ------------- ------------- -----------
------------- ------------- ------------- -----------
Net asset distribution by category:
Qualified variable annuity policies. . . . . . . . . . . . . . . . . $ 70,700,634 $ 60,278,537 $ 62,660,837 $32,787,522
Non-qualified variable annuity policies. . . . . . . . . . . . . . . 132,944,838 122,984,687 134,019,176 54,928,079
------------- ------------- ------------- -----------
$ 203,645,472 $ 183,263,224 $ 196,680,013 $87,715,601
------------- ------------- ------------- -----------
------------- ------------- ------------- -----------
Qualified units outstanding, September 30, 1997. . . . . . . . . . . . 26,348,527 29,675,178 31,664,399 25,801,100
Net asset value per qualified unit, September 30, 1997 . . . . . . . . 2.683286 2.031278 1.978905 1.270780
Non-qualified units outstanding, September 30, 1997. . . . . . . . . . 49,545,534 60,545,472 67,723,906 43,223,909
Net asset value per non-qualified unit, September 30, 1997 . . . . . . 2.683286 2.031278 1.978905 1.270780
<CAPTION>
SELECT SELECT
MONEY INTERNATIONAL CAPITAL FIDELITY VIP
MARKET EQUITY APPRECIATION HIGH INCOME
------------ ------------- ------------- -------------
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
VA305 VA306 VA307 VA308
------------ ------------- ------------- -------------
<S> <C> <C> <C> <C>
ASSETS:
Investments in shares of Allmerica Investment Trust . . . . . . . . . $ 77,333,383 $ 128,790,400 $ 64,819,799 -
Investments in shares of Fidelity Variable Insurance Products Fund . . - - - $ 62,737,558
Investment in shares of T. Rowe Price International Series, Inc. . . . - - - -
Receivable from Allmerica Financial Life Insurance and
Annuity Company (Sponsor) . . . . . . . . . . . . . . . . . . . . . - - - -
------------ ------------- ------------- -------------
Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . 77,333,383 128,790,400 64,819,799 62,737,558
LIABILITIES:
Payable to Allmerica Financial Life Insurance and
Annuity Company (Sponsor). . . . . . . . . . . . . . . . . . . . . . - - - -
------------ ------------- ------------- -------------
Net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 77,333,383 $ 128,790,400 $ 64,819,799 $ 62,737,558
------------ ------------- ------------- -------------
------------ ------------- ------------- -------------
Net asset distribution by category:
Qualified variable annuity policies . . . . . . . . . . . . . . . . $ 25,091,369 $ 43,714,493 $ 22,084,316 $ 22,271,386
Non-qualified variable annuity policies. . . . . . . . . . . . . . . 52,242,014 85,075,907 42,735,483 40,466,172
------------ ------------- ------------- -------------
$ 77,333,383 $ 128,790,400 $ 64,819,799 $ 62,737,558
------------ ------------- ------------- -------------
------------ ------------- ------------- -------------
Qualified units outstanding, September 30, 1997. . . . . . . . . . . . 21,504,669 29,721,757 13,448,309 15,664,538
Net asset value per qualified unit, September 30, 1997 . . . . . . . . 1.166787 1.470791 1.642163 1.421771
Non-qualified units outstanding, September 30, 1997. . . . . . . . . . 44,774,251 57,843,641 26,023,899 28,461,807
Net asset value per non-qualified unit, September 30, 1997 . . . . . . 1.166787 1.470791 1.642163 1.421771
<CAPTION>
T. ROWE PRICE
FIDELITY VIP FIDELITY VIP INTERNATIONAL
EQUITY-INCOME GROWTH STOCK
------------- ------------- -------------
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
VA309 VA310 VA311
------------- ------------- -------------
<S> <C> <C> <C>
ASSETS:
Investments in shares of Allmerica Investment Trust. . . . . . . . . . - - -
Investments in shares of Fidelity Variable Insurance Products Fund . . $ 91,006,718 $ 70,160,789 -
Investment in shares of T. Rowe Price International Series, Inc. . . . - - $ 39,872,507
Receivable from Allmerica Financial Life Insurance and
Annuity Company (Sponsor) . . . . . . . . . . . . . . . . . . . . . - - -
------------- ------------- -------------
Total assets . . . . . . . . . . . . . . . . . . . . . . . . . . 91,006,718 70,160,789 39,872,507
------------- ------------- -------------
------------- ------------- -------------
LIABILITIES:
Payable to Allmerica Financial Life Insurance and
Annuity Company (Sponsor). . . . . . . . . . . . . . . . . . . . . . - - -
------------- ------------- -------------
Net assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 91,006,718 $ 70,160,789 $ 39,872,507
------------- ------------- -------------
------------- ------------- -------------
Net asset distribution by category:
Qualified variable annuity policies . . . . . . . . . . . . . . . . $ 27,377,968 $ 22,227,134 $ 11,566,496
Non-qualified variable annuity policies. . . . . . . . . . . . . . . 63,628,750 47,933,655 28,306,011
------------- ------------- -------------
$ 91,006,718 $ 70,160,789 $ 39,872,507
------------- ------------- -------------
------------- ------------- -------------
Qualified units outstanding, September 30, 1997. . . . . . . . . . . . 16,414,309 12,918,006 8,751,160
Net asset value per qualified unit, September 30, 1997 . . . . . . . . 1.667933 1.720632 1.321710
Non-qualified units outstanding, September 30, 1997. . . . . . . . . . 38,148,265 27,858,167 21,416,203
Net asset value per non-qualified unit, September 30, 1997 . . . . . . 1.667933 1.720632 1.321710
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
ALLMERICA SELECT SEPARATE ACCOUNT
STATEMENTS OF OPERATIONS
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1997 (UNAUDITED)
<TABLE>
<CAPTION>
SELECT
AGGRESSIVE SELECT SELECT GROWTH
GROWTH GROWTH AND INCOME
------------ ------------ -------------
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
VA301 VA302 VA303
------------ ------------ -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,134,171 $ 1,419,575 $ 3,656,396
------------ ------------ -------------
EXPENSES (NOTE 4):
Mortality and expense risk fees. . . . . . . . . . . . . . . . . . 1,395,526 1,306,024 1,479,004
Administrative expense charges . . . . . . . . . . . . . . . . . . 172,481 161,418 182,798
------------ ------------ -------------
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . 1,568,007 1,467,442 1,661,802
------------ ------------ -------------
Net investment income (loss) . . . . . . . . . . . . . . . . . . 566,164 (47,867) 1,994,594
------------ ------------ -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain distributions from portfolio sponsors. . . . . . . . - - -
Net realized gain (loss) from sales of investments . . . . . . . . 1,023,606 - 607,557
------------ ------------ -------------
Net realized gain (loss) from gain distributions
and sales of investments. . . . . . . . . . . . . . . . . . . 1,023,606 - 607,557
Net unrealized gain. . . . . . . . . . . . . . . . . . . . . . . . 42,903,335 35,514,220 26,345,620
------------ ------------ -------------
Net realized and unrealized gain (loss) on investments. . . . . 43,926,941 35,514,220 26,953,177
------------ ------------ -------------
Net increase (decrease) in net assets from operations . . . . . $ 44,493,105 $ 35,466,353 $ 28,947,771
------------ ------------ -------------
------------ ------------ -------------
<CAPTION>
SELECT
SELECT MONEY INTERNATIONAL
INCOME MARKET EQUITY
------------ ------------ -------------
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
VA304 VA305 VA306
------------ ------------ -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,615,290 $ 3,282,350 $ 875,017
------------ ------------ -------------
EXPENSES (NOTE 4):
Mortality and expense risk fees. . . . . . . . . . . . . . . . . . 714,687 767,140 956,259
Administrative expense charges . . . . . . . . . . . . . . . . . . 88,332 94,815 118,189
------------ ------------ -------------
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . 803,019 861,955 1,074,448
------------ ------------ -------------
Net investment income (loss) . . . . . . . . . . . . . . . . . . 2,812,271 2,420,395 (199,431)
------------ ------------ -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain distributions from portfolio sponsors. . . . . . . . - - -
Net realized gain (loss) from sales of investments . . . . . . . . (15,505) - 619,594
------------ ------------ -------------
Net realized gain (loss) from gain distributions
and sales of investments. . . . . . . . . . . . . . . . . . . (15,505) - 619,594
Net unrealized gain. . . . . . . . . . . . . . . . . . . . . . . . 1,240,547 - 8,053,932
------------ ------------ -------------
Net realized and unrealized gain (loss) on investments. . . . . 1,225,042 - 8,673,526
------------ ------------ -------------
Net increase (decrease) in net assets from operations . . . . . $ 4,037,313 $ 2,420,395 $ 8,474,095
------------ ------------ -------------
------------ ------------ -------------
<CAPTION>
SELECT
CAPITAL FIDELITY VIP FIDELITY VIP
APPRECIATION HIGH INCOME EQUITY-INCOME
------------ ------------ -------------
SUB-ACCOUNT SUB-ACCOUNT SUB-ACCOUNT
VA307 VA308 VA309
------------ ------------ -------------
<S> <C> <C> <C>
INVESTMENT INCOME:
Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ - $ 2,652,738 $ 4,825,348
------------ ------------ -------------
EXPENSES (NOTE 4):
Mortality and expense risk fees . . . . . . . . . . . . . . . . . 424,726 409,652 595,945
Administrative expense charges . . . . . . . . . . . . . . . . . . 52,495 50,631 73,656
------------ ------------ -------------
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . 477,221 460,283 669,601
------------ ------------ -------------
Net investment income (loss) . . . . . . . . . . . . . . . . . . (477,221) 2,192,455 4,155,747
------------ ------------ -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain distributions from portfolio sponsors. . . . . . . . - - -
Net realized gain (loss) from sales of investments . . . . . . . . 5,279 90,421 157,148
------------ ------------ -------------
Net realized gain (loss) from gain distributions
and sales of investments . . . . . . . . . . . . . . . . . . . 5,279 90,421 157,148
Net unrealized gain . . . . . . . . . . . . . . . . . . . . . . . 7,013,084 4,666,299 9,805,458
------------ ------------ -------------
Net realized and unrealized gain (loss) on investments. . . . . 7,018,363 4,756,720 9,962,606
------------ ------------ -------------
Net increase (decrease) in net assets from operations . . . . . $ 6,541,142 $ 6,949,175 $ 14,118,353
------------ ------------ -------------
------------ ------------ -------------
T. ROWE PRICE
FIDELITY VIP INTERNATIONAL
GROWTH STOCK
------------- -------------
SUB-ACCOUNT SUB-ACCOUNT
VA310 VA311
------------- -------------
<S> <C> <C>
INVESTMENT INCOME:
Dividends. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,398,535 $ -
------------- -------------
EXPENSES (NOTE 4):
Mortality and expense risk fees. . . . . . . . . . . . . . . . . . 459,595 270,453
Administrative expense charges . . . . . . . . . . . . . . . . . . 56,804 33,427
------------- -------------
Total expenses . . . . . . . . . . . . . . . . . . . . . . . . . 516,399 303,880
------------- -------------
Net investment income (loss) . . . . . . . . . . . . . . . . . . 882,136 (303,880)
------------- -------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Realized gain distributions from portfolio sponsors . . . . . . . - -
Net realized gain (loss) from sales of investments . . . . . . . . 48,263 928,827
------------- -------------
Net realized gain (loss) from gain distributions
and sales of investments . . . . . . . . . . . . . . . . . . 48,263 928,827
Net unrealized gain . . . . . . . . . . . . . . . . . . . . . . . 9,899,807 2,245,346
------------- -------------
Net realized and unrealized gain (loss) on investments. . . . . 9,948,070 3,174,173
------------- -------------
Net increase (decrease) in net assets from operations . . . . . $ 10,830,206 $ 2,870,293
------------- -------------
------------- -------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
ALLAMERICA SELECT SEPARATE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<TABLE>
<CAPTION>
SELECT
AGGRESSIVE GROWTH
NINE
MONTHS ENDED YEAR ENDED
9/30/97 (UNAUDITED) 12/31/96
------------------ ------------------
<S> <C> <C>
INCREASE IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . $ 566,164 $ (1,539,970)
Net realized gain (loss) on investments. . . . . . . . . . . . . . 1,023,606 11,785,820
Net unrealized gain (loss) on investments. . . . . . . . . . . . . 42,903,335 5,722,458
------------------ ------------------
Net increase in net assets from operations . . . . . . . . . . . . 44,493,105 15,968,308
------------------ ------------------
FROM CAPITAL TRANSACTIONS (NOTE 5):
Net purchase payments. . . . . . . . . . . . . . . . . . . . . . . 22,315,058 21,731,521
Withdrawals. . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,149,426) (4,141,746)
Annuity benefits . . . . . . . . . . . . . . . . . . . . . . . . . (1,242,364) (1,122,381)
Other transfers from (to) the General Account of
Allmerica Financial Life Insurance and
Annuity Company (Sponsor) . . . . . . . . . . . . . . . . . . . 10,452,578 10,183,331
Net increase (decrease) in investment by Allmerica
Financial Life Insurance and Annuity Company (Sponsor). . . . . - -
------------------ ------------------
Net increase in net assets from capital transactions . . . . . . . 26,375,846 26,650,725
------------------ ------------------
Net increase in net assets . . . . . . . . . . . . . . . . . . . . 70,868,951 42,619,033
NET ASSETS:
Beginning of year. . . . . . . . . . . . . . . . . . . . . . . . . . 132,776,521 90,157,488
------------------ ------------------
End of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 203,645,472 $ 132,776,521
------------------ ------------------
------------------ ------------------
<CAPTION>
SELECT GROWTH
NINE
MONTHS ENDED YEAR ENDED
9/30/97 (UNAUDITED) 12/31/96
------------------ ------------------
<S> <C> <C>
INCREASE IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . $ (47,867) $ (898,196)
Net realized gain (loss) on investments. . . . . . . . . . . . . . - 16,195,169
Net unrealized gain (loss) on investments. . . . . . . . . . . . . 35,514,220 129,186
------------------ ------------------
Net increase in net assets from operations . . . . . . . . . . . . 35,466,353 15,426,159
------------------ ------------------
FROM CAPITAL TRANSACTIONS (NOTE 5):
Net purchase payments. . . . . . . . . . . . . . . . . . . . . . . 31,118,608 17,763,681
Withdrawals. . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,917,400) (3,986,783)
Annuity benefits . . . . . . . . . . . . . . . . . . . . . . . . . (1,161,749) (1,215,130)
Other transfers from (to) the General Account of
Allmerica Financial Life Insurance and
Annuity Company (Sponsor) . . . . . . . . . . . . . . . . . . . 14,908,844 10,095,706
Net increase (decrease) in investment by Allmerica
Financial Life Insurance and Annuity Company (Sponsor). . . . . - -
------------------ ------------------
Net increase in net assets from capital transactions . . . . . . . 39,948,303 22,657,474
------------------ ------------------
Net increase in net assets . . . . . . . . . . . . . . . . . . . . 75,414,656 38,083,633
NET ASSETS:
Beginning of year. . . . . . . . . . . . . . . . . . . . . . . . . . 107,848,568 69,764,935
------------------ ------------------
End of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 183,263,224 $ 107,848,568
------------------ ------------------
------------------ ------------------
<CAPTION>
SELECT GROWTH AND INCOME
NINE
MONTHS ENDED YEAR ENDED
9/30/97 (UNAUDITED) 12/31/96
------------------ ------------------
<S> <C> <C>
INCREASE IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . $ 1,994,594 $ 32,552
Net realized gain (loss) on investments. . . . . . . . . . . . . . 607,557 9,805,881
Net unrealized gain (loss) on investments. . . . . . . . . . . . . 26,345,620 8,711,254
------------------ ------------------
Net increase in net assets from operations . . . . . . . . . . . . 28,947,771 18,549,687
------------------ ------------------
FROM CAPITAL TRANSACTIONS (NOTE 5):
Net purchase payments. . . . . . . . . . . . . . . . . . . . . . . 31,852,260 21,733,952
Withdrawals. . . . . . . . . . . . . . . . . . . . . . . . . . . . (5,674,263) (4,962,459)
Annuity benefits . . . . . . . . . . . . . . . . . . . . . . . . . (1,768,718) (1,743,124)
Other transfers from (to) the General Account of
Allmerica Financial Life Insurance and
Annuity Company (Sponsor) . . . . . . . . . . . . . . . . . . . 14,598,812 9,558,401
Net increase (decrease) in investment by Allmerica
Financial Life Insurance and Annuity Company (Sponsor). . . . . - -
------------------ ------------------
Net increase in net assets from capital transactions . . . . . . . 39,008,091 24,586,770
------------------ ------------------
Net increase in net assets . . . . . . . . . . . . . . . . . . . . 67,955,862 43,136,457
NET ASSETS:
Beginning of year. . . . . . . . . . . . . . . . . . . . . . . . . . 128,724,151 85,587,694
------------------ ------------------
End of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 196,680,013 $ 128,724,151
------------------ ------------------
------------------ ------------------
<CAPTION>
SELECT INCOME
NINE
MONTHS ENDED YEAR ENDED
9/30/97 (UNAUDITED) 12/31/96
------------------ ------------------
<S> <C> <C>
INCREASE IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . $ 2,812,271 $ 2,974,135
Net realized gain (loss) on investments. . . . . . . . . . . . . . (15,505) (36,578)
Net unrealized gain (loss) on investments. . . . . . . . . . . . . 1,240,547 (1,544,397)
------------------ ------------------
Net increase in net assets from operations . . . . . . . . . . . . 4,037,313 1,393,160
------------------ ------------------
FROM CAPITAL TRANSACTIONS (NOTE 5):
Net purchase payments. . . . . . . . . . . . . . . . . . . . . . . 12,160,058 13,585,775
Withdrawals. . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,839,137) (3,057,073)
Annuity benefits . . . . . . . . . . . . . . . . . . . . . . . . . (1,056,644) (760,423)
Other transfers from (to) the General Account of
Allmerica Financial Life Insurance and
Annuity Company (Sponsor) . . . . . . . . . . . . . . . . . . . 4,427,914 4,255,199
Net increase (decrease) in investment by Allmerica
Financial Life Insurance and Annuity Company (Sponsor). . . . . - -
------------------ ------------------
Net increase in net assets from capital transactions . . . . . . . 12,692,191 14,023,478
------------------ ------------------
Net increase in net assets . . . . . . . . . . . . . . . . . . . . 16,729,504 15,416,638
NET ASSETS:
Beginning of year. . . . . . . . . . . . . . . . . . . . . . . . . . 70,986,097 55,569,459
------------------ ------------------
End of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 87,715,601 $ 70,986,097
------------------ ------------------
------------------ ------------------
<CAPTION>
MONEY MARKET
NINE
MONTHS ENDED YEAR ENDED
9/30/97 (UNAUDITED) 12/31/96
------------------ ------------------
<S> <C> <C>
INCREASE IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . $ 2,420,395 $ 2,299,995
Net realized gain (loss) on investments. . . . . . . . . . . . . . - -
Net unrealized gain (loss) on investments. . . . . . . . . . . . . - -
------------------ ------------------
Net increase in net assets from operations . . . . . . . . . . . . 2,420,395 2,299,995
------------------ ------------------
FROM CAPITAL TRANSACTIONS (NOTE 5):
Net purchase payments. . . . . . . . . . . . . . . . . . . . . . . 116,527,443 125,481,090
Withdrawals. . . . . . . . . . . . . . . . . . . . . . . . . . . . (6,688,912) (8,111,565)
Annuity benefits . . . . . . . . . . . . . . . . . . . . . . . . . (2,243,047) (2,188,638)
Other transfers from (to) the General Account of
Allmerica Financial Life Insurance and
Annuity Company (Sponsor) . . . . . . . . . . . . . . . . . . . (101,467,150) (98,437,925)
Net increase (decrease) in investment by Allmerica
Financial Life Insurance and Annuity Company (Sponsor). . . . . - -
------------------ ------------------
Net increase in net assets from capital transactions . . . . . . . 6,128,334 16,742,962
------------------ ------------------
Net increase in net assets . . . . . . . . . . . . . . . . . . . . 8,548,729 19,042,957
NET ASSETS:
Beginning of year. . . . . . . . . . . . . . . . . . . . . . . . . . 68,784,654 49,741,697
------------------ ------------------
End of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 77,333,383 $ 68,784,654
------------------ ------------------
------------------ ------------------
<CAPTION>
SELECT
INTERNATIONAL EQUITY
NINE
MONTHS ENDED YEAR ENDED
9/30/97 (UNAUDITED) 12/31/96
------------------ ------------------
<S> <C> <C>
INCREASE IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . $ (199,431) $ 708,489
Net realized gain (loss) on investments. . . . . . . . . . . . . . 619,594 852,450
Net unrealized gain (loss) on investments. . . . . . . . . . . . . 8,053,932 9,983,344
------------------ ------------------
Net increase in net assets from operations . . . . . . . . . . . . 8,474,095 11,544,283
------------------ ------------------
FROM CAPITAL TRANSACTIONS (NOTE 5):
Net purchase payments. . . . . . . . . . . . . . . . . . . . . . . 23,497,947 18,081,107
Withdrawals. . . . . . . . . . . . . . . . . . . . . . . . . . . . (3,103,117) (1,965,855)
Annuity benefits . . . . . . . . . . . . . . . . . . . . . . . . . (641,450) (707,488)
Other transfers from (to) the General Account of
Allmerica Financial Life Insurance and
Annuity Company (Sponsor) . . . . . . . . . . . . . . . . . . . 18,749,762 14,742,527
Net increase (decrease) in investment by Allmerica
Financial Life Insurance and Annuity Company (Sponsor). . . . . - (131)
------------------ ------------------
Net increase in net assets from capital transactions . . . . . . . 38,503,142 30,150,160
------------------ ------------------
Net increase in net assets . . . . . . . . . . . . . . . . . . . . 46,977,237 41,694,443
NET ASSETS:
Beginning of year. . . . . . . . . . . . . . . . . . . . . . . . . . 81,813,163 40,118,720
------------------ ------------------
End of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 128,790,400 $ 81,813,163
------------------ ------------------
------------------ ------------------
<CAPTION>
SELECT
CAPITAL APPRECIATION
NINE
MONTHS ENDED YEAR ENDED
9/30/97 (UNAUDITED) 12/31/96
------------------ ------------------
<S> <C> <C>
INCREASE IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . $ (477,221) $ (293,059)
Net realized gain (loss) on investments. . . . . . . . . . . . . . 5,279 102,076
Net unrealized gain (loss) on investments. . . . . . . . . . . . . 7,013,084 255,084
------------------ ------------------
Net increase in net assets from operations . . . . . . . . . . . . 6,541,142 64,101
------------------ ------------------
FROM CAPITAL TRANSACTIONS (NOTE 5):
Net purchase payments. . . . . . . . . . . . . . . . . . . . . . . 16,064,725 15,193,651
Withdrawals. . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,257,079) (674,569)
Annuity benefits . . . . . . . . . . . . . . . . . . . . . . . . . (649,571) (342,590)
Other transfers from (to) the General Account of
Allmerica Financial Life Insurance and
Annuity Company (Sponsor) . . . . . . . . . . . . . . . . . . . 8,135,219 14,243,697
Net increase (decrease) in investment by Allmerica
Financial Life Insurance and Annuity Company (Sponsor). . . . . - (293)
------------------ ------------------
Net increase in net assets from capital transactions . . . . . . . 22,293,294 28,419,896
------------------ ------------------
Net increase in net assets . . . . . . . . . . . . . . . . . . . . 28,834,436 28,483,997
NET ASSETS:
Beginning of year. . . . . . . . . . . . . . . . . . . . . . . . . . 35,985,363 7,501,366
------------------ ------------------
End of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 64,819,799 $ 35,985,363
------------------ ------------------
------------------ ------------------
<CAPTION>
FIDELITY VIP HIGH INCOME
NINE
MONTHS ENDED YEAR ENDED
9/30/97 (UNAUDITED) 12/31/96
------------------ ------------------
<S> <C> <C>
INCREASE IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . $ 2,192,455 $ 409,104
Net realized gain (loss) on investments. . . . . . . . . . . . . . 90,421 197,551
Net unrealized gain (loss) on investments. . . . . . . . . . . . . 4,666,299 1,271,076
------------------ ------------------
Net increase in net assets from operations . . . . . . . . . . . . 6,949,175 1,877,731
------------------ ------------------
FROM CAPITAL TRANSACTIONS (Note 5):
Net purchase payments. . . . . . . . . . . . . . . . . . . . . . . 16,507,137 11,120,091
Withdrawals. . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,149,677) (646,913)
Annuity benefits . . . . . . . . . . . . . . . . . . . . . . . . . (574,848) (152,621)
Other transfers from (to) the General Account of
Allmerica Financial Life Insurance and
Annuity Company (Sponsor) . . . . . . . . . . . . . . . . . . . 12,591,059 8,855,108
Net increase (decrease) in investment by Allmerica
Financial Life Insurance and Annuity Company (Sponsor). . . . . - (244)
------------------ ------------------
Net increase in net assets from capital transactions . . . . . . . 27,373,671 19,175,421
------------------ ------------------
Net increase in net assets . . . . . . . . . . . . . . . . . . . . 34,322,846 21,053,152
NET ASSETS:
Beginning of year. . . . . . . . . . . . . . . . . . . . . . . . . . 28,414,712 7,361,560
------------------ ------------------
End of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 62,737,558 $ 28,414,712
------------------ ------------------
------------------ ------------------
<CAPTION>
FIDELITY VIP EQUITY-INCOME
NINE
MONTHS ENDED YEAR ENDED
9/30/97 (UNAUDITED) 12/31/96
------------------ ------------------
<S> <C> <C>
INCREASE IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . $ 4,155,747 $ (307,461)
Net realized gain (loss) on investments. . . . . . . . . . . . . . 157,148 593,563
Net unrealized gain (loss) on investments. . . . . . . . . . . . . 9,805,458 2,785,423
------------------ ------------------
Net increase in net assets from operations . . . . . . . . . . . . 14,118,353 3,071,525
------------------ ------------------
FROM CAPITAL TRANSACTIONS (Note 5):
Net purchase payments. . . . . . . . . . . . . . . . . . . . . . . 23,694,736 17,074,371
Withdrawals. . . . . . . . . . . . . . . . . . . . . . . . . . . . (2,283,457) (963,035)
Annuity benefits . . . . . . . . . . . . . . . . . . . . . . . . . (432,688) (270,530)
Other transfers from (to) the General Account of
Allmerica Financial Life Insurance and
Annuity Company (Sponsor) . . . . . . . . . . . . . . . . . . . 13,392,448 12,632,288
Net increase (decrease) in investment by Allmerica
Financial Life Insurance and Annuity Company (Sponsor). . . . . - (266)
------------------ ------------------
Net increase in net assets from capital transactions . . . . . . . 34,371,039 28,472,828
------------------ ------------------
Net increase in net assets . . . . . . . . . . . . . . . . . . . . 48,489,392 31,544,353
NET ASSETS:
Beginning of year. . . . . . . . . . . . . . . . . . . . . . . . . . 42,517,326 10,972,973
------------------ ------------------
End of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 91,006,718 $ 42,517,326
------------------ ------------------
------------------ ------------------
<CAPTION>
FIDELITY VIP GROWTH
NINE
MONTHS ENDED YEAR ENDED
9/30/97 (UNAUDITED) 12/31/96
------------------ ------------------
<S> <C> <C>
INCREASE IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . $ 882,136 $ (264,824)
Net realized gain (loss) on investments. . . . . . . . . . . . . . 48,263 672,039
Net unrealized gain (loss) on investments. . . . . . . . . . . . . 9,899,807 1,680,882
------------------ ------------------
Net increase in net assets from operations . . . . . . . . . . . . 10,830,206 2,088,097
------------------ ------------------
FROM CAPITAL TRANSACTIONS (Note 5):
Net purchase payments. . . . . . . . . . . . . . . . . . . . . . . 16,925,353 14,378,774
Withdrawals. . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,464,000) (838,572)
Annuity benefits . . . . . . . . . . . . . . . . . . . . . . . . . (716,167) (189,479)
Other transfers from (to) the General Account of
Allmerica Financial Life Insurance and
Annuity Company (Sponsor) . . . . . . . . . . . . . . . . . . . 10,025,470 10,876,313
Net increase (decrease) in investment by Allmerica
Financial Life Insurance and Annuity Company (Sponsor). . . . . - (279)
------------------ ------------------
Net increase in net assets from capital transactions . . . . . . . 24,770,656 24,226,757
------------------ ------------------
Net increase in net assets . . . . . . . . . . . . . . . . . . . . 35,600,862 26,314,854
NET ASSETS:
Beginning of year. . . . . . . . . . . . . . . . . . . . . . . . . . 34,559,927 8,245,073
------------------ ------------------
End of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 70,160,789 $ 34,559,927
------------------ ------------------
------------------ ------------------
<CAPTION>
T. ROWE PRICE
INTERNATIONAL STOCK
NINE
MONTHS ENDED YEAR ENDED
9/30/97 (UNAUDITED) 12/31/96
------------------ ------------------
<S> <C> <C>
INCREASE IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss) . . . . . . . . . . . . . . . . . . . $ (303,880) $ 28,642
Net realized gain (loss) on investments. . . . . . . . . . . . . . 928,827 167,304
Net unrealized gain (loss) on investments. . . . . . . . . . . . . 2,245,346 1,157,339
------------------ ------------------
Net increase in net assets from operations . . . . . . . . . . . . 2,870,293 1,353,285
------------------ ------------------
FROM CAPITAL TRANSACTIONS (Note 5):
Net purchase payments. . . . . . . . . . . . . . . . . . . . . . . 11,700,196 7,419,649
Withdrawals. . . . . . . . . . . . . . . . . . . . . . . . . . . . (1,400,768) (345,338)
Annuity benefits . . . . . . . . . . . . . . . . . . . . . . . . . (372,035) (121,005)
Other transfers from (to) the General Account of
Allmerica Financial Life Insurance and
Annuity Company (Sponsor) . . . . . . . . . . . . . . . . . . . 7,210,250 7,229,762
Net increase (decrease) in investment by Allmerica
Financial Life Insurance and Annuity Company (Sponsor). . . . . - (234)
------------------ ------------------
Net increase in net assets from capital transactions . . . . . . . 17,137,643 14,182,834
------------------ ------------------
Net increase in net assets . . . . . . . . . . . . . . . . . . . . 20,007,936 15,536,119
NET ASSETS:
Beginning of year. . . . . . . . . . . . . . . . . . . . . . . . . . 19,864,571 4,328,452
------------------ ------------------
End of year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 39,872,507 $ 19,864,571
------------------ ------------------
------------------ ------------------
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
ALLAMERICA SELECT SEPARATE ACCOUNT
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
----------------------------------------------------------
SELECT AGGRESSIVE GROWTH SELECT GROWTH
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
1996 1995 1996 1995
----------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss). . . . . . . . . . . . . . . . . . . . $ 7,575,445 $ (990,950) $ 14,315,564 $ (800,733)
Net realized gain (loss) on investments . . . . . . . . . . . . . . 2,670,405 972,280 981,409 322,290
Net unrealized gain (loss) on investments . . . . . . . . . . . . . 5,722,458 18,705,267 129,186 11,406,894
----------------------------------------------------------
Net increase (decrease) in net assets from operations . . . . . . . 15,968,308 18,686,597 15,426,159 10,928,451
----------------------------------------------------------
FROM CAPITAL TRANSACTIONS (NOTE 5):
Net purchase payments . . . . . . . . . . . . . . . . . . . . . . . 21,731,521 16,597,983 17,763,681 13,140,808
Terminations. . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,141,746) (2,613,864) (3,986,783) (2,081,833)
Annuity benefits. . . . . . . . . . . . . . . . . . . . . . . . . . (1,122,381) (836,246) (1,215,130) (552,400)
Other transfers from (to) the General Account of
Allmerica Financial Life Insurance and
Annuity Company (Sponsor). . . . . . . . . . . . . . . . . . . . 10,183,331 9,109,723 10,095,706 6,876,212
Net increase (decrease) in investment by Allmerica
Financial Life Insurance and Annuity Company (Sponsor). . . . . . -- -- -- --
----------------------------------------------------------
Net increase in net assets from capital transactions. . . . . . . . 26,650,725 22,257,596 22,657,474 17,382,787
----------------------------------------------------------
Net increase in net assets. . . . . . . . . . . . . . . . . . . . . 42,619,033 40,944,193 38,083,633 28,311,238
NET ASSETS:
Beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . 90,157,488 49,213,295 69,764,935 41,453,697
----------------------------------------------------------
End of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 132,776,521 $ 90,157,488 $ 107,848,568 $ 69,764,935
----------------------------------------------------------
----------------------------------------------------------
<CAPTION>
----------------------------------------------------------
SELECT GROWTH AND INCOME SELECT INCOME
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
1996 1995 1996 1995
----------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss). . . . . . . . . . . . . . . . . . . . $ 9,202,668 $ 3,391,368 $ 2,974,135 $ 2,215,712
Net realized gain (loss) on investments . . . . . . . . . . . . . . 635,765 438,606 (36,578) (14,940)
Net unrealized gain (loss) on investments . . . . . . . . . . . . . 8,711,254 12,799,013 (1,544,397) 4,029,082
----------------------------------------------------------
Net increase (decrease) in net assets from operations.. . . . . . . 18,549,687 16,628,987 1,393,160 6,229,854
----------------------------------------------------------
FROM CAPITAL TRANSACTIONS (NOTE 5):
Net purchase payments . . . . . . . . . . . . . . . . . . . . . . . 21,733,952 15,849,889 13,585,775 9,619,527
Terminations. . . . . . . . . . . . . . . . . . . . . . . . . . . . (4,962,459) (2,802,823) (3,057,073) (1,690,048)
Annuity benefits. . . . . . . . . . . . . . . . . . . . . . . . . . (1,743,124) (709,581) (760,423) (335,773)
Other transfers from (to) the General Account of
Allmerica Financial Life Insurance and
Annuity Company (Sponsor). . . . . . . . . . . . . . . . . . . . 9,558,401 10,087,538 4,255,199 7,991,041
Net increase (decrease) in investment by Allmerica
Financial Life Insurance and Annuity Company (Sponsor). . . . . . -- -- -- --
----------------------------------------------------------
Net increase in net assets from capital transactions. . . . . . . . 24,586,770 22,425,023 14,023,478 15,584,747
----------------------------------------------------------
Net increase in net assets. . . . . . . . . . . . . . . . . . . . . 43,136,457 39,054,010 15,416,638 21,814,601
NET ASSETS:
Beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . 85,587,694 46,533,684 55,569,459 33,754,858
----------------------------------------------------------
End of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 128,724,151 $ 85,587,694 $ 70,986,097 $ 55,569,459
----------------------------------------------------------
----------------------------------------------------------
<CAPTION>
MONEY MARKET SELECT INTERNATIONAL EQUITY
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
1996 1995 1996 1995
----------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss). . . . . . . . . . . . . . . . . . . . $ 2,299,995 $ 1,719,398 $ 888,271 $ 137,966
Net realized gain (loss) on investments . . . . . . . . . . . . . . -- -- 672,668 147,088
Net unrealized gain (loss) on investments . . . . . . . . . . . . . -- -- 9,983,344 4,467,679
----------------------------------------------------------
Net increase (decrease) in net assets from operations . . . . . . 2,299,995 1,719,398 11,544,283 4,752,733
----------------------------------------------------------
FROM CAPITAL TRANSACTIONS (NOTE 5):
Net purchase payments . . . . . . . . . . . . . . . . . . . . . . . 125,481,090 76,385,322 18,081,107 11,188,585
Terminations. . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,111,565) (3,185,528) (1,965,855) (1,112,904)
Annuity benefits. . . . . . . . . . . . . . . . . . . . . . . . . . (2,188,638) (94,146) (707,488) (115,695)
Other transfers from (to) the General Account of
Allmerica Financial Life Insurance and
Annuity Company (Sponsor). . . . . . . . . . . . . . . . . . . . (98,437,925) (58,361,911) 14,742,527 4,192,682
Net increase (decrease) in investment by Allmerica
Financial Life Insurance and Annuity Company (Sponsor). . . . . . -- -- -- (131)
----------------------------------------------------------
Net increase in net assets from capital transactions. . . . . . . . 16,742,962 14,743,737 30,150,160 14,152,668
----------------------------------------------------------
Net increase in net assets. . . . . . . . . . . . . . . . . . . . . 19,042,957 16,463,135 41,694,443 18,905,401
NET ASSETS:
Beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . 49,741,697 33,278,562 40,118,720 21,213,319
----------------------------------------------------------
End of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 68,784,654 $ 49,741,697 $ 81,813,163 $ 40,118,720
----------------------------------------------------------
----------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SELECT CAPITAL APPRECIATION VIPF HIGH INCOME
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
1996 1995 * 1996 1995
----------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss). . . . . . . . . . . . . . . . . $ (226,978) $ 114,627 $ 534,775 $ (29,100)
Net realized gain (loss) on investments . . . . . . . . . . . 35,995 5,420 71,880 7,896
Net unrealized gain (loss) on investments . . . . . . . . . . 255,084 623,287 1,271,076 248,739
----------------------------------------------------------
Net increase (decrease) in net assets from operations . . . . 64,101 743,334 1,877,731 227,535
----------------------------------------------------------
FROM CAPITAL TRANSACTIONS (NOTE 5):
Net purchase payments . . . . . . . . . . . . . . . . . . . . 15,193,651 2,854,303 11,120,091 3,454,999
Terminations. . . . . . . . . . . . . . . . . . . . . . . . . (674,569) (17,489) (646,913) (48,800)
Annuity benefits. . . . . . . . . . . . . . . . . . . . . . . (342,590) -- (152,621) --
Other transfers from (to) the General Account of
Allmerica Financial Life Insurance and
Annuity Company (Sponsor). . . . . . . . . . . . . . . . . 14,243,697 3,921,018 8,855,108 3,727,626
Net increase (decrease) in investment by Allmerica
Financial Life Insurance and Annuity Company (Sponsor). . . (293) 200 (244) 200
----------------------------------------------------------
Net increase in net assets from capital transactions. . . . . 28,419,896 6,758,032 19,175,421 7,134,025
----------------------------------------------------------
Net increase in net assets. . . . . . . . . . . . . . . . . . 28,483,997 7,501,366 21,053,152 7,361,560
NET ASSETS:
Beginning of year . . . . . . . . . . . . . . . . . . . . . . . 7,501,366 -- 7,361,560 --
----------------------------------------------------------
End of year . . . . . . . . . . . . . . . . . . . . . . . . . . $ 35,985,363 $ 7,501,366 $ 28,414,712 $ 7,361,560
----------------------------------------------------------
----------------------------------------------------------
<CAPTION>
VIPF EQUITY INCOME VIPF GROWTH
YEAR ENDED DECEMBER 31, YEAR ENDED DECEMBER 31,
1996 1995 1996 1995
------------------------------------------------------------
<S> <C> <C> <C> <C>
INCREASE IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss). . . . . . . . . . . . . . . . . $ 247,501 $ 45,796 $ 409,873 $ (33,272)
Net realized gain (loss) on investments . . . . . . . . . . . 38,601 4,036 (2,658) 2,603
Net unrealized gain (loss) on investments . . . . . . . . . . 2,785,423 725,086 1,680,882 16,058
----------------------------------------------------------
Net increase (decrease) in net assets from operations.. . . . 3,071,525 774,918 2,088,097 (14,611)
----------------------------------------------------------
FROM CAPITAL TRANSACTIONS (NOTE 5):
Net purchase payments . . . . . . . . . . . . . . . . . . . . 17,074,371 4,818,777 14,378,774 4,017,744
Terminations. . . . . . . . . . . . . . . . . . . . . . . . . (963,035) (121,736) (838,572) (75,349)
Annuity benefits. . . . . . . . . . . . . . . . . . . . . . . (270,530) -- (189,479) --
Other transfers from (to) the General Account of
Allmerica Financial Life Insurance and
Annuity Company (Sponsor). . . . . . . . . . . . . . . . . 12,632,288 5,500,814 10,876,313 4,317,089
Net increase (decrease) in investment by Allmerica
Financial Life Insurance and Annuity Company (Sponsor). . . (266) 200 (279) 200
----------------------------------------------------------
Net increase in net assets from capital transactions. . . . . 28,472,828 10,198,055 24,226,757 8,259,684
----------------------------------------------------------
Net increase in net assets. . . . . . . . . . . . . . . . . . 31,544,353 10,972,973 26,314,854 8,245,073
NET ASSETS:
Beginning of year . . . . . . . . . . . . . . . . . . . . . . . 10,972,973 -- 8,245,073 --
----------------------------------------------------------
End of year . . . . . . . . . . . . . . . . . . . . . . . . . . $ 42,517,326 $ 10,972,973 $ 34,559,927 $ 8,245,073
----------------------------------------------------------
----------------------------------------------------------
<CAPTION>
T ROWE PRICE INTERNATIONAL STOCK
YEAR ENDED DECEMBER 31,
1996 1995
---------------------------------
<S> <C> <C>
INCREASE IN NET ASSETS:
FROM OPERATIONS:
Net investment income (loss). . . . . . . . . . . . . . . . $ 135,450 $ (15,093)
Net realized gain (loss) on investments. . . . . . . . . . 60,496 359
Net unrealized gain (loss) on investments . . . . . . . . . 1,157,339 137,855
-----------------------------
Net increase (decrease) in net assets from operations . . . 1,353,285 123,121
-----------------------------
FROM CAPITAL TRANSACTIONS (Note 5):
Net purchase payments . . . . . . . . . . . . . . . . . . . . 7,419,649 2,240,134
Terminations. . . . . . . . . . . . . . . . . . . . . . . . . (345,338) (7,735)
Annuity benefits. . . . . . . . . . . . . . . . . . . . . . . (121,005) --
Other transfers from (to) the General Account of
Allmerica Financial Life Insurance and
Annuity Company (Sponsor). . . . . . . . . . . . . . . . . 7,229,762 1,972,732
Net increase (decrease) in investment by Allmerica
Financial Life Insurance and Annuity Company (Sponsor). . . (234) 200
-----------------------------
Net increase in net assets from capital transactions. . . . . 14,182,834 4,205,331
-----------------------------
Net increase in net assets. . . . . . . . . . . . . . . . . . 15,536,119 4,328,452
NET ASSETS:
Beginning of year . . . . . . . . . . . . . . . . . . . . . . . 4,328,452 --
-----------------------------
End of year . . . . . . . . . . . . . . . . . . . . . . . . . . $ 19,864,571 $ 4,328,452
-----------------------------
-----------------------------
</TABLE>
<PAGE>
Note 3 -Investments
<TABLE>
<CAPTION>
PORTFOLIO INFORMATION
--------------------------------------------
NET ASSET
NUMBER OF AGGREGATE VALUE
SUB-ACCOUNT INVESTMENT PORTFOLIO SHARES COST PER SHARE
- ----------- -------------------- ---------- ------------- ---------
<S> <C> <C> <C> <C>
Allmerica Investment Trust:
1 Growth. . . . . . . . . . . . . . . . . . . . . 110,055,382 $ 229,024,225 $ 2.333
2 Investment Grade Income . . . . . . . . . . . . 103,438,633 113,627,174 1.084
3 Money Market. . . . . . . . . . . . . . . . . . 107,817,230 107,817,230 1.000
4 Equity Index. . . . . . . . . . . . . . . . . . 52,450,075 88,367,039 2.165
5 Government Bond . . . . . . . . . . . . . . . . 39,114,343 41,424,326 1.036
6 Select Aggressive Growth. . . . . . . . . . . . 87,020,817 139,817,764 2.037
7 Select Growth . . . . . . . . . . . . . . . . . 66,301,677 85,143,561 1.430
8 Select Growth and Income. . . . . . . . . . . . 96,096,118 112,789,176 1.405
9 Select Value Opportunity* . . . . . . . . . . . 62,909,943 77,793,900 1.511
11 Select International Equity . . . . . . . . . . 77,433,814 88,522,121 1.356
12 Select Capital Appreciation . . . . . . . . . . 52,836,265 74,770,882 1.485
Delaware Group Premium Fund, Inc.:
20 International Equity. . . . . . . . . . . . . . 4,463,871 54,978,549 15.110
Fidelity Variable Insurance Products Fund:
102 High Income . . . . . . . . . . . . . . . . . . 8,441,754 95,895,412 12.520
103 Equity-Income . . . . . . . . . . . . . . . . . 17,756,126 286,139,438 21.030
104 Growth. . . . . . . . . . . . . . . . . . . . . 9,800,989 232,839,711 31.140
105 Overseas. . . . . . . . . . . . . . . . . . . . . 4,967,758 76,554,441 18.840
Fidelity Variable Insurance Products Fund II:
106 Asset Manager . . . . . . . . . . . . . . . . . 3,188,169 46,462,707 16.930
T. Rowe Price International Series, Inc.:
150 International Stock . . . . . . . . . . . . . . 3,417,484 39,861,692 12.640
</TABLE>
<PAGE>
Note 5-Policyowner and Sponsor
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
9/30/97 (UNAUDITED) #VALUE!
-------------------------------------------------------------
UNITS AMOUNT UNITS AMOUNT
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Sub-Account 1 - Growth
Issuance of Units . . . . . . . . . . . . 37,874,673 $ 67,936,404 35,304,977 $ 51,743,998
Redemption of Units. . . . . . . . . . . . (18,262,119) (34,073,408) (21,696,178) (32,152,574)
----------- ------------- ----------- -------------
Net increase . . . . . . . . . . . . . . 19,612,554 $ 33,862,996 13,608,799 $ 19,591,424
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
Sub-Account 2 - Investment Grade Income
Issuance of Units . . . . . . . . . . . . 25,730,455 $ 36,242,689 22,251,158 $ 29,805,978
Redemption of Units. . . . . . . . . . . . (15,821,186) (22,636,023) (10,536,284) (14,399,466)
----------- ------------- ----------- -------------
Net increase . . . . . . . . . . . . . . 9,909,269 $ 13,606,666 11,714,874 $ 15,406,512
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
Sub-Account 3 - Money Market
Issuance of Units . . . . . . . . . . . . 350,202,366 $ 402,733,717 282,297,450 $ 311,415,988
Redemption of Units. . . . . . . . . . . . (327,153,184) (376,283,937) (250,653,905) (277,053,089)
----------- ------------- ----------- -------------
Net increase . . . . . . . . . . . . . . 23,049,182 $ 26,449,780 31,643,545 $ 34,362,899
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
Sub-Account 4 - Equity Index
Issuance of Units . . . . . . . . . . . . 24,872,139 $ 46,502,660 15,684,631 $ 23,678,043
Redemption of Units. . . . . . . . . . . . (6,933,313) (14,156,905) (5,326,619) (8,321,417)
----------- ------------- ----------- -------------
Net increase . . . . . . . . . . . . . . 17,938,826 $ 32,345,755 10,358,012 $ 15,356,626
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
Sub-Account 5 - Government Bond
Issuance of Units . . . . . . . . . . . . 18,890,805 $ 24,443,790 14,112,537 $ 17,853,327
Redemption of Units. . . . . . . . . . . . (19,681,101) (25,373,784) (14,921,644) (18,594,813)
----------- ------------- ----------- -------------
Net decrease . . . . . . . . . . . . . . (790,296) $ (929,994) (809,107) $ (741,486)
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
Sub-Account 6 - Select Aggressive Growth
Issuance of Units . . . . . . . . . . . . 35,763,170 $ 68,639,135 27,081,256 $ 41,466,865
Redemption of Units. . . . . . . . . . . . (16,138,007) (32,131,840) (11,020,255) (17,709,995)
----------- ------------- ----------- -------------
Net increase . . . . . . . . . . . . . . 19,625,163 $ 36,507,295 16,061,001 $ 23,756,870
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
Sub-Account 7 - Select Growth
Issuance of Units . . . . . . . . . . . . 27,922,379 $ 40,585,154 17,304,437 $ 21,604,967
Redemption of Units. . . . . . . . . . . . (12,364,447) (18,373,018) (8,640,922) (11,269,819)
----------- ------------- ----------- -------------
Net increase . . . . . . . . . . . . . . 15,557,932 $ 22,212,136 8,663,515 $ 10,335,148
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
Sub-Account 8 - Select Growth and Income
Issuance of Units . . . . . . . . . . . . 30,744,252 $ 47,965,411 21,862,840 $ 27,624,594
Redemption of Units. . . . . . . . . . . . (12,085,117) (19,845,584) (9,119,386) (12,228,709)
----------- ------------- ----------- -------------
Net increase . . . . . . . . . . . . . . 18,659,135 $ 28,119,827 12,743,454 $ 15,395,885
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
Sub-Account 9 - Select Value Opportunity*
Issuance of Units . . . . . . . . . . . . 25,449,281 $ 37,695,132 17,986,247 $ 23,543,827
Redemption of Units. . . . . . . . . . . . (8,737,786) (13,525,057) (7,602,047) (11,672,400)
----------- ------------- ----------- -------------
Net increase . . . . . . . . . . . . . . 16,711,495 $ 24,170,075 10,384,200 $ 11,871,427
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
</TABLE>
<PAGE>
Note 5-Policyowner and Sponsor
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
9/30/97 (UNAUDITED) #VALUE!
-------------------------------------------------------------
UNITS AMOUNT UNITS AMOUNT
----------- ------------- ----------- -------------
<S> <C> <C> <C> <C>
Sub-Account 11 - Select International Equity
Issuance of Units . . . . . . . . . . . . 49,870,637 $ 61,358,213 29,103,954 $ 31,035,726
Redemption of Units. . . . . . . . . . . . (10,064,967) (13,217,210) (3,953,031) (4,596,079)
----------- ------------- ----------- -------------
Net increase . . . . . . . . . . . . . . 39,805,670 $ 48,141,003 25,150,923 $ 26,439,647
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
Sub-Account 12 - Select Capital Appreciation
Issuance of Units . . . . . . . . . . . . 42,762,596 $ 64,669,269 17,501,260 $ 21,616,195
Redemption of Units. . . . . . . . . . . . (5,931,868) (9,538,169) (1,404,636) (1,788,329)
----------- ------------- ----------- -------------
Net increase . . . . . . . . . . . . . . 36,830,728 $ 55,131,100 16,096,624 $ 19,827,866
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
Sub-Account 20 - DGPF International Equity
Issuance of Units . . . . . . . . . . . . 16,626,938 $ 24,352,808 14,117,462 $ 18,997,169
Redemption of Units. . . . . . . . . . . . (6,903,129) (10,641,459) (6,349,120) (9,711,849)
----------- ------------- ----------- -------------
Net increase . . . . . . . . . . . . . . 9,723,809 $ 13,711,349 7,768,342 $ 9,285,320
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
Sub-Account 102 - VIPF High Income
Issuance of Units . . . . . . . . . . . . 22,860,033 $ 43,304,569 16,043,384 $ 26,770,767
Redemption of Units. . . . . . . . . . . . (6,937,900) (13,727,506) (5,042,507) (8,569,880)
----------- ------------- ----------- -------------
Net increase . . . . . . . . . . . . . . 15,922,133 $ 29,577,063 11,000,877 $ 18,200,887
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
Sub-Account 103 - VIPF Equity-Income
Issuance of Units . . . . . . . . . . . . 45,899,476 $ 105,655,085 47,872,325 $ 85,011,509
Redemption of Units. . . . . . . . . . . . (18,047,315) (48,109,159) (13,083,657) (24,443,848)
----------- ------------- ----------- -------------
Net increase . . . . . . . . . . . . . . 27,852,161 $ 57,545,926 34,788,668 $ 60,567,661
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
Sub-Account 104 - VIPF Growth
Issuance of Units . . . . . . . . . . . . 43,350,053 $ 91,090,978 41,188,868 $ 73,809,217
Redemption of Units. . . . . . . . . . . . (17,387,359) (38,714,510) (15,420,587) (29,027,196)
----------- ------------- ----------- -------------
Net increase . . . . . . . . . . . . . . 25,962,694 $ 52,376,468 25,768,281 $ 44,782,021
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
Sub-Account 105 - VIPF Overseas
Issuance of Units . . . . . . . . . . . . 17,161,950 $ 25,255,249 28,543,819 $ 30,215,321
Redemption of Units. . . . . . . . . . . . (19,369,675) (28,622,964) (23,061,224) (23,527,593)
----------- ------------- ----------- -------------
Net increase (decrease). . . . . . . . . (2,207,725) $ (3,367,715) 5,482,595 $ 6,687,728
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
Sub-Account 106 - VIPF II Asset Manager
Issuance of Units. . . . . . . . . . . . . 16,905,477 $ 21,049,783 22,403,083 $ 21,445,027
Redemption of Units. . . . . . . . . . . . (7,934,989) (10,360,624) (9,679,616) (8,607,199)
----------- ------------- ----------- -------------
Net increase . . . . . . . . . . . . . . 8,970,488 $ 10,689,159 12,723,467 $ 12,837,828
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
Sub-Account 150 - T. Rowe Price
International Stock
Issuance of Units . . . . . . . . . . . . 29,613,486 $ 33,245,151 12,128,441 $ 12,563,739
Redemption of Units. . . . . . . . . . . . (4,579,976) (4,844,300) (1,246,514) (1,334,878)
----------- ------------- ----------- -------------
Net increase . . . . . . . . . . . . . . 25,033,510 $ 28,400,851 10,881,927 $ 11,228,861
----------- ------------- ----------- -------------
----------- ------------- ----------- -------------
</TABLE>
<PAGE>
Note 7-Purchases & Sales
<TABLE>
<CAPTION>
SUB-ACCOUNT INVESTMENT PORTFOLIO PURCHASES SALES
- ----------- -------------------- --------------- ----------------
<S> <C> <C> <C>
Allmerica Investment Trust:
1 Growth. . . . . . . . . . . . . . . . . . . . . . $ 62,644,134 $ 4,760,029
2 Investment Grade Income . . . . . . . . . . . . . 24,625,367 5,734,984
3 Money Market . . . . . . . . . . . . . . . . . . 112,666,418 83,967,660
4 Equity Index. . . . . . . . . . . . . . . . . . . 35,531,692 1,315,523
5 Government Bond . . . . . . . . . . . . . . . . . 14,129,168 12,619,134
6 Select Aggressive Growth . . . . . . . . . . . . 53,179,881 6,843,274
7 Select Growth . . . . . . . . . . . . . . . . . . 40,562,495 5,758,856
8 Select Growth and Income. . . . . . . . . . . . . 41,351,887 3,775,993
9 Select Value Opportunity* . . . . . . . . . . . . 29,716,381 1,824,905
11 Select International Equity . . . . . . . . . . . 51,461,623 2,101,380
12 Select Capital Appreciation . . . . . . . . . . . 55,729,376 1,059,760
Delaware Group Premium Fund, Inc.:
20 International Equity. . . . . . . . . . . . . . . 16,276,182 1,538,983
Fidelity Variable Insurance Products Fund:
102 High Income . . . . . . . . . . . . . . . . . . . 35,725,781 1,100,358
103 Equity-Income . . . . . . . . . . . . . . . . . . 71,713,301 6,384,881
104 Growth. . . . . . . . . . . . . . . . . . . . . . 69,534,867 4,709,579
105 Overseas. . . . . . . . . . . . . . . . . . . . . 9,344,671 12,049,917
Fidelity Variable Insurance Products Fund II:
106 Asset Manager . . . . . . . . . . . . . . . . . . 14,991,214 2,468,855
T. Rowe Price International Series, Inc.:
150 International Stock . . . . . . . . . . . . . . . 28,953,345 212,312
Delaware Group Premium Fund, Inc.:
-------------- --------------
Totals $ 768,137,783 $ 158,226,383
-------------- --------------
-------------- --------------
</TABLE>
<PAGE>
ALLMERICA SELECT SEPARATE ACCOUNT
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 1997
NOTE 1 -- ORGANIZATION
Allmerica Select Separate Account (Allmerica Select) is a separate
investment account of ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
(the Company), established on March 5, 1992 for the purpose of separating from
the general assets of the Company those assets used to fund certain variable
annuity contracts issued by the Company. The Company is a wholly-owned
subsidiary of First Allmerica Financial Life Insurance Company (First
Allmerica). First Allmerica is a wholly-owned subsidiary of Allmerica Financial
Corporation (AFC). Under applicable insurance law, the assets and liabilities of
Allmerica Select are clearly identified and distinguished from the other assets
and liabilities of the Company. Allmerica Select cannot be charged with
liabilities arising out of any other business of the Company.
Allmerica Select is registered as a unit investment trust under the
Investment Company Act of 1940, as amended (the 1940 Act). Allmerica Select
currently offers eleven Sub-Accounts. Each Sub-Account invests exclusively in a
corresponding investment portfolio of Allmerica Investment Trust (the Trust)
managed by Allmerica Investment Management Company, Inc., a wholly-owned
subsidiary of First Allmerica; the Variable Insurance Products Fund (Fidelity
VIP) managed by Fidelity Management and Research Company (FMR); or T. Rowe Price
International Series, Inc. (T. Rowe Price) managed by Rowe Price-Fleming
International, Inc. The Trust, Fidelity VIP, and T. Rowe Price (the Funds) are
open-end, diversified management investment companies registered under the 1940
Act.
Allmerica Select funds two types of variable annuity contracts, "qualified"
contracts and "non-qualified" contracts. A qualified contract is one that is
purchased in connection with a retirement plan which meets the requirements of
Section 401, 403, or 408 of the Internal Revenue Code (the Code), while a
non-qualified contract is one that is not purchased in connection with one of
the indicated retirement plans. The tax treatment for certain partial
withdrawals or surrenders will vary according to whether they are made from a
qualified contract or a non-qualified contract.
NOTE 2 -- SIGNIFICANT ACCOUNTING POLICIES
INVESTMENTS -- Security transactions are recorded on the trade date.
Investments held by the Sub-Accounts are stated at the net asset value per share
of the respective investment portfolio of the Trust, Fidelity VIP, or T. Rowe
Price. Net realized gains and losses on securities sold are determined on the
average cost method. Dividends and capital gain distributions are recorded on
the ex-dividend date and are reinvested in additional shares of the respective
investment portfolio of the Trust, Fidelity VIP, or T. Rowe Price at net asset
value.
FEDERAL INCOME TAXES -- The Company is taxed as a "life insurance company"
under Subchapter L of the Code and files a consolidated federal income tax
return with First Allmerica. The Company anticipates no tax liability resulting
from the operations of Allmerica Select. Therefore, no provision for income
taxes has been charged against Allmerica Select.
<PAGE>
PART C. OTHER INFORMATION
ITEM 24. FINANCIAL STATEMENTS AND EXHIBITS
(a) FINANCIAL STATEMENTS
Financial Statements Included in Part A
None
Financial Statements Included in Part B
Financial Statements for Allmerica Financial Life Insurance and
Annuity Company and for Allmerica Select Separate Account of Allmerica
Financial Life Insurance and Annuity Company were previously filed on
April 30, 1997 in Post-effective Amendment No. 12 and are incorporated
by reference herein.
Unaudited Financial Statements for period ended 9/30/97 for Allmerica
Financial Life Insurance and Annuity Company and for Allmerica Select
Separate Account of Allmerica Financial Life Insurance and Annuity
Company are filed herewith.
Financial Statements Included in Part C
None
(b) EXHIBITS
EXHIBIT 1 Vote of Board of Directors Authorizing Establishment of
Registrant dated March 5, 1992 was previously filed on
April 15, 1992 in Registrant's Initial Registration
Statement and is incorporated herein by reference.
EXHIBIT 2 Not Applicable. Pursuant to Rule 26a-2, the Insurance
Company may hold the assets of the Registrant NOT pursuant
to a trust indenture or other such instrument.
EXHIBIT 3 Form of Underwriting and Administrative Services Agreement
and Broker's Agreement were previously filed on April 15,
1992 in Registrant's Initial Registration Statement and
are incorporated herein by reference.
EXHIBIT 4 Specimen Policy Form A and Certificate and Generic Policy
Form were previously filed on April 15, 1992 in
Registrant's Initial Registration Statement and are
incorporated herein be reference. Policy Form B was filed
on May 8, 1996 in Post-Effective Amendment No. 9 and is
incorporated herein by reference.
EXHIBIT 5 Specimen Generic Application Form A was previously filed
on April 15, 1992 in Registrant's Initial Registration
Statement and is incorporated herein by reference.
Specimen Application Form B was filed on May 8, 1996 in
Post-Effective Amendment No. 9 and is incorporated by
reference herein.
EXHIBIT 6 The Depositor's Articles of Incorporation and Bylaws, as
amended to reflect its name change was previously filed on
September 29, 1995 in Post-Effective Amendment No. 7 and
is incorporated by reference herein.
EXHIBIT 7 Not Applicable.
<PAGE>
EXHIBIT 8 (a) AUV Calculation Services Agreement with The
Shareholder Services Group dated March 31, 1995
was previously filed on May 1, 1995 in
Post-Effective Amendment No. 6 and is incorporated
by reference herein.
(b) Fidelity Services Agreement was previously filed
on April 30, 1996 in Post-Effective No. 8 and is
incorporated herein by reference.
(c) An Amendment to the Fidelity Service Agreement
effective as of January 1, 1997 was filed on April
30, 1997 in Post-Effective Amendment No. 12 and
is incorporated by reference herein.
(d) A proposed form of the Fidelity Service Contract
was filed on April 30, 1997 in Post-Effective
Amendment No. 12 and is incorporated by reference
herein.
(e) A proposed form of the T. Rowe Price Agreement was
filed on April 30, 1997 in Post-Effective
Amendment No. 12 and is incorporated by reference
herein.
EXHIBIT 9 Consent and Opinion of Counsel is filed herewith.
EXHIBIT 10 Consent of Independent Accountants is filed herewith.
EXHIBIT 11 None.
EXHIBIT 12 None.
EXHIBIT 13 None.
EXHIBIT 14 Not Applicable.
EXHIBIT 15 Form of Participation Agreement between the Company
(formerly known as SMA Life) and Allmerica Investment
Trust was previously filed on April 1, 1991 in
Registration Statement No. 33-39702 and is incorporated by
reference herein. Form of Participation Agreement between
the Company and Fidelity VIP, and an Amendment thereto,
was previously filed in Post-effective Amendment No. 6 on
April 25, 1995 and are incorporated by reference herein.
Form of Participation Agreement between the Company and T.
Rowe Price International Series was previously filed on
May 1, 1995 in Post-Effective Amendment No. 6 and on April
25, 1995 is incorporated by reference herein.
ITEM 25. DIRECTORS AND OFFICERS OF THE DEPOSITOR
The principal business address of all the following officers is:
440 Lincoln Street
Worcester, Massachusetts 01653
<PAGE>
DIRECTORS AND PRINCIPAL OFFICERS OF THE COMPANY
<TABLE>
<CAPTION>
NAME AND POSITION PRINCIPAL OCCUPATION(S) DURING PAST FIVE YEARS
- ----------------- ----------------------------------------------
<S> <C>
Bruce C. Anderson Director of First Allmerica since 1996; Vice
Director President, First Allmerica since 1984
Abigail M. Armstrong Secretary of First Allmerica since 1996;
Secretary and Counsel Counsel, First Allmerica since 1991
Robert E. Bruce Director and Chief Information Officer of First
Director Allmerica since 1997; Vice President of First
Allmerica since 1995; Corporate Manager,
Digital Equipment Corporation 1979 to 1995
John P. Kavanaugh Director and Chief Investment Officer of First
Director, Vice President and Allmerica since 1996; Vice President, First
Chief Investment Officer Allmerica since 1991
John F. Kelly Director of First Allmerica since 1996; Senior Vice
Director, Vice President President, General Counsel and Assistant
and General Counsel Secretary, First Allmerica since 1991
J. Barry May Director of First Allmerica since 1996; Director and
Director President, The Hanover Insurance Company since
1996; Vice President, The Hanover Insurance
Company, 1993 to 1996; General Manager, The
Hanover Insurance Company 1989 to 1993
James R. McAuliffe Director of First Allmerica since 1996;
Director President and CEO, Citizens Insurance Company of America
since 1994; Vice President 1982 to 1994 and Chief
Investment Officer, First Allmerica 1986 to 1994
John F. O'Brien Director, Chairman of the Board, President and
Director and Chairman of the Board Chief Executive Officer, First Allmerica since 1989
Edward J. Parry, III Director and Chief Financial Officer of First
Director, Vice President and Chief Allmerica since 1996; Vice President and
Financial Officer Treasurer, First Allmerica since 1993
Richard M. Reilly Director of First Allmerica since 1996; Vice
Director, President and Chief President, First Allmerica since 1990; Director,
Executive Officer Allmerica Investments, Inc. since 1990; Director
and President, Allmerica Investment Management
Company, Inc. since 1990
Eric A. Simonsen Director of First Allmerica since 1996; Vice
Director and Vice President President, First Allmerica since 1990; Chief
Financial Officer, First Allmerica 1990 to 1996
Phillip E. Soule Director of First Allmerica since 1996; Vice
Director President, First Allmerica since 1987
</TABLE>
<PAGE>
ITEM 26. PERSONS UNDER COMMON CONTROL WITH REGISTRANT
See attached organization chart.
ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
NAME ADDRESS TYPE OF BUSINESS
---- ------- ----------------
AAM Equity Fund 440 Lincoln Street Massachusetts Grantor
Worcester MA 01653 Trust
AAM Growth & Income Fund, LLC 440 Lincoln Street Limited Liability
Worcester MA 01653 Corporation
AAM High Yield Fund, LLC 440 Lincoln Street Limited Liability
Worcester MA 01653 Corporation
AFC Capital Trust I 440 Lincoln Street Statutory Business Trust
Worcester MA 01653
Allmerica Asset Management 440 Lincoln Street Investment advisory
Limited Worcester MA 01653 services
Allmerica Asset Management, 440 Lincoln Street Investment advisory
Inc. Worcester MA 01653 services
Allmerica Benefits, Inc. 440 Lincoln Street Non-insurance medical
Worcester MA 01653 services
Allmerica Equity Index Pool 440 Lincoln Street Massachusetts Grantor
Worcester MA 01653 Trust
Allmerica Financial Alliance 100 North Parkway Multi-line property and
Insurance Company Worcester MA 01605 casualty insurance
Allmerica Financial Benefit 100 North Parkway Multi-line property and
Insurance Company Worcester MA 01605 casualty insurance
Allmerica Financial 440 Lincoln Street Holding Company
Corporation Worcester MA 01653
Allmerica Financial Insurance 440 Lincoln Street Insurance Broker
Brokers, Inc. Worcester MA 01653
Allmerica Financial Life 440 Lincoln Street Life insurance, accident
Insurance and Annuity Company Worcester MA 01653 and health insurance,
(formerly known as SMA Life annuities, variable
Assurance Company) annuities and variable
life insurance
Allmerica Financial Services 440 Lincoln Street Insurance Agency
Insurance Agency, Inc. Worcester MA 01653
Allmerica Funding Corp. 440 Lincoln Street Special purpose funding
Worcester MA 01653 vehicle for commercial
paper
Allmerica Funds 440 Lincoln Street Investment Company
Worcester MA 01653
Allmerica, Inc. 440 Lincoln Street Common employer for
Worcester MA 01653 Allmerica Financial
Corporation entities
<PAGE>
Allmerica Institutional 440 Lincoln Street Accounting, marketing and
Services, Inc. (formerly Worcester MA 01653 shareholder services for
known as 440 Financial investment companies
Group of Worcester, Inc.)
Allmerica Investment 440 Lincoln Street Investment advisory
Management Company, Inc. Worcester MA 01653 services
Allmerica Investments, Inc. 440 Lincoln Street Securities, retail
Worcester MA 01653 broker-dealer
Allmerica Investment Trust 440 Lincoln Street Investment Company
Worcester MA 01653
Allmerica Plus Insurance 440 Lincoln Street Insurance Agency
Agency, Inc. Worcester MA 01653
Allmerica Property & Casualty 440 Lincoln Street Holding Company
Companies, Inc. Worcester MA 01653
Allmerica Securities Trust 440 Lincoln Street Investment Company
Worcester MA 01653
Allmerica Services 440 Lincoln Street Internal administrative
Corporation Worcester MA 01653 services provider to
Allmerica Financial
Corporation entities
Allmerica Trust Company, N.A. 440 Lincoln Street Limited purpose national
Worcester MA 01653 trust company
AMGRO, Inc. 100 North Parkway Premium financing
Worcester MA 01605
APC Funding Corp. 440 Lincoln Street Special purpose funding
Worcester MA 01653 vehicle for commercial
paper
Citizens Corporation 440 Lincoln Street Holding Company
Worcester MA 01653
Citizens Insurance Company of 645 West Grand River Multi-line property and
America Howell MI 48843 casualty insurance
Citizens Insurance Company of 333 Pierce Road Multi-line property and
Illinois Itasca IL 60143 casualty insurance
Citizens Insurance Company of 3950 Priority Way Multi-line property and
the Midwest South Drive, Suite casualty insurance
200 Indianapolis IN
46280
Citizens Insurance Company of 8101 N. High Street Multi-line property and
Ohio P.O. Box 342250 casualty insurance
Columbus OH 43234
Citizens Management, Inc. 645 West Grand River Services management
Howell MI 48843 company
<PAGE>
First Allmerica Financial 440 Lincoln Street Life, pension, annuity,
Life Insurance Company Worcester MA 01653 accident and health
(formerly State Mutual Life insurance company
Assurance Company of America)
Greendale Special Placements 440 Lincoln Street Massachusetts Grantor
Fund Worcester MA 01653 Trust
The Hanover American 100 North Parkway Multi-line property and
Insurance Company Worcester MA 01605 casualty insurance
The Hanover Insurance Company 100 North Parkway Multi-line property and
Worcester MA 01605 casualty insurance
Hanover Texas Insurance 801 East Campbell Attorney-in-fact for
Management Company, Inc. Road Richardson Hanover Lloyd's Insurance
TX 75081 Company
Hanover Lloyd's Insurance 801 East Campbell Multi-line property and
Company Road Richardson casualty insurance
TX 75081
Lloyds Credit Corporation 440 Lincoln Street Premium financing service
Worcester MA 01653 franchises
Logan Wells Water Company, 603 Heron Drive Water Company serving
Inc. Bridgeport NJ 08014 land development
investment
Massachusetts Bay Insurance 100 North Parkway Multi-line property and
Company Worcester MA 01605 casualty insurance
SMA Financial Corp. 440 Lincoln Street Holding Company
Worcester MA 01653
Somerset Square, Inc. 440 Lincoln Street Real estate holding
Worcester MA 01653 company
Sterling Risk Management 440 Lincoln Street Risk management services
Services, Inc. Worcester MA 01653
<PAGE>
<TABLE>
<CAPTION>
<S><C>
Allmerica Financial Corporation
Delaware
| | | | |
___________________________________________________________________________________
100% 100% 100% 100% 100%
Allmerica, Inc. Allmerica First Allmerica AFC Capital Allmerica
Funding Corp. Financial Life Trust I Services
Insurance Corporation
Company
Massachusetts Massachusetts Massachusetts Delaware Massachusetts
|
_______________________________________________
|
100%
Logan Wells
Water Company,
Inc.
New Jersey
______________________________________________________________________________________________________________________
| | | | | |
65.78% 100% 99.2% 100% 100% 100%
Allmerica Sterling Risk Allmerica Allmerica Allmerica Allmerica
Property Management Trust Investments, Institutional Financial Life
& Casualty Services, Inc. Company, N.A. Inc. Services, Inc. Insurance and
Companies, Inc. Annuity Company
Federally
Delaware Delaware Chartered Massachusetts Massachusetts Delaware
|
___________________________________________________________________________ ______|_______
| | | | |
100% 100% 100% 100% 100%
APC The Hanover Allmerica Citizens Somerset
Funding Corp. Insurance Financial Insurance Square, Inc.
Company Insurance Company of
Brokers, Inc. Illinois
Massachusetts New Hampshire Massachusetts Illinois Massachusetts
|
______________________________________________________________________________________________________________________
| | | | |
100% 100% 100% 82.5% 100%
Allmerica The Hanover Hanover Texas Citizens Massachusetts
Financial American Insurance Corporation Bay Insurance
Benefit Insurance Management Company
Insurance Company Company, Inc.
Company
Pennsylvania New Hampshire Texas Delaware New Hampshire
|
________________________________________________________
| | |
100% 100% 100%
Citizens Citizens Insurance Citizens
Insurance Company of Insurance
Company of Ohio America Company of the
Midwest
Ohio Michigan Indiana
|
_______________
100%
Citizens
Management Inc.
Michigan
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S><C>
Allmerica Financial Corporation
Delaware
| | | | |
___________________________________________________________________________________
100% 100% 100% 100% 100%
Allmerica, Inc. Allmerica First Allmerica AFC Capital Allmerica
Funding Corp. Financial Life Trust I Services
Insurance Corporation
Company
Massachusetts Massachusetts Massachusetts Delaware Massachusetts
|
_______________________________________________
|
100%
SMA
Financial Corp.
Massachusetts
|
_____________________________________________________________________________________________________________________
| | | | |
100% 100% 100% 100% 100%
Allmerica Allmerica Allmerica Allmerica Allmerica
Investment Asset Financial Services Asset Benefits
Management Management, Insurance Management, Inc.
Company, Inc. Inc. Agency, Inc. Limited
Massachusetts Massachusetts Massachusetts Bermuda Florida
________________ _________________________________
Allmerica Equity Greendale AAM
Index Pool Special Equity Fund
Placements
Fund
Massachusetts Massachusetts Massachusetts
_____________________________________
| | Grantor Trusts established for the benefit of First
100% 100% Allmerica, Allmerica Financial Life, Hanover and
Allmerica AMGRO, Inc. Citizens
Financial Allmerica Allmerica Allmerica
Alliance Investment Trust Funds Securities
Insurance Trust
Company
Massachusetts Massachusetts Massachusetts
New Hampshire Massachusetts
|
|
100% Affiliated Management Investment Companies
Lloyd's
Credit Hanover Lloyd's
Corporation Insurance
Company
Massachusetts Texas
Affiliated Lloyd's plan company, controlled by
Underwriters for the benefit of the Hanover
Insurance Company
AAM AAM
Growth High
Income Fund Yield Fund,
L.L.C. L.L.C.
Delaware Massachusettes
LLC established for the benefit of
First Allmerica, Allmerica
Financial Life, Hanover and
Citizens
</TABLE>
<PAGE>
ITEM 27. NUMBER OF CONTRACT OWNERS
As of December 31, 1997, there were 9,839 Contact Owners of qualified
Contracts and 13,660 Contract Owners of non-qualified Contracts.
ITEM 28. INDEMNIFICATION
Article VIII of the Bylaws of Allmerica Financial Life Insurance and
Annuity Company (the Depositor) state: Each Director and each Officer of
the Corporation, whether or not in office, (and his executors or
administrators), shall be indemnified or reimbursed by the Corporation
against all expenses actually and necessarily incurred by him in the
defense or reasonable settlement of any action, suit, or proceeding in
which he is made a party by reason of his being or having been a Director
or Officer of the Corporation, including any sums paid in settlement or to
discharge judgment, except in relation to matters as to which he shall be
finally adjudged in such action, suit or proceeding to be liable for
negligence or misconduct in the performance of his duties as such Director
or Officer; and the foregoing right of indemnification or reimbursement
shall not affect any other rights to which he may be entitled under the
Articles of Incorporation, any statute, bylaw, agreement, vote of
stockholders, or otherwise.
<PAGE>
ITEM 29. PRINCIPAL UNDERWRITERS
(a) Allmerica Investments, Inc. also acts as principal underwriter for the
following:
- VEL Account, VEL II Account, Inheiritage, Group VEL Account and
Allmerica Select Separate Account II, Separate Accounts VA-A,
VA-B, VA-C, VA-G, VA-H, VA-K and VA-P, Separate Account KG, KGC,
Fulcrum, and Fulcrum Variable Life of Allmerica Financial Life
Insurance and Annuity Company
- Separate Account I, Separate Accounts VA-K and VA-P, Inheiritage
Account, Allmerica Select Separate Account, VEL II Account, Group
VEL, Separate Accounts KG, KGC, Fulcrum, Fulcrum Variable Life of
First Allmerica Financial Life Insurance Company
- Allmerica Investment Trust
(b) The Principal Business Address of each of the following Directors and
Officers of Allmerica Investments, Inc. is:
440 Lincoln Street
Worcester, Massachusetts 01653
NAME POSITION OR OFFICE WITH UNDERWRITER
---- -----------------------------------
Abigail M. Armstrong Secretary and Counsel
Philip J. Coffey Vice President
Emil J. Aberizk, Jr. Vice President
Edward T. Berger Vice President and Chief Compliance
Officer
Richard F. Betzler, Jr. Vice President
Thomas P. Cunningham Vice President Chief Financial Officer
and Controller
David J. Mueller Vice President
William F. Monroe, Jr. Vice President
John F. Kelly Director
John F. O'Brien Director
Stephen Parker President, Director and Chief Executive
Officer
Edward J. Parry, III Treasurer
Richard M. Reilly Director
Eric A. Simonsen Director
Mark Steinberg Senior Vice President
<PAGE>
ITEM 30. LOCATION OF ACCOUNTS AND RECORDS
Each account, book or other document required to be maintained by Section
31(a) of the Investment Company Act of 1940 and Rules 31a-1 to 31a-3
thereunder are maintained by the Company at 440 Lincoln Street, Worcester,
Massachusetts.
ITEM 31. MANAGEMENT SERVICES
Effective March 31, 1995, the Company provides daily unit value
calculations and related services for the Company's separate accounts.
ITEM 32. UNDERTAKINGS
(a) Subject to the terms and conditions of Section 15(d) of the Securities
Exchange Act of 1934, the undersigned registrant hereby undertakes to
file with the Securities and Exchange Commission such supplementary
and periodic information, documents, and reports as may be prescribed
by any rule or regulation of the Commission heretofore or hereafter
duly adopted pursuant to authority conferred in that section.
(b) The Registrant hereby undertakes to include as part of the application
to purchase a Contract a space that the applicant can check to request
a Statement of Additional Information.
(c) The Registrant hereby undertakes to deliver a Statement of Additional
Information promptly upon written or oral request, according to the
requirements of Form N-4.
(d) Insofar as indemnification for liability arising under the 1933 Act
may be permitted to Directors, Officers and Controlling Persons of
Registrant under any registration statement, underwriting agreement or
otherwise, Registrant has been advised that, in the opinion of the
Securities and Exchange Commission, such indemnification is against
public policy as expressed in the 1933 Act and is, therefore,
unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by Registrant of expenses
incurred or paid by a Director, Officer or Controlling Person of
Registrant in the successful defense of any action, suit or
proceeding) is asserted by such Director, Officer or Controlling
Person in connection with the securities being registered, Registrant
will, unless in the opinion of its counsel the matter has been settled
by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is
against public policy as expressed in the 1933 Act and will be
governed by the final adjudication of such issue.
(e) The Company hereby represents that the aggregate fees and charges
under the Contracts are reasonable in relation to the services
rendered, expenses expected to be incurred, and risks assumed by the
Company.
ITEM 33. REPRESENTATIONS CONCERNING WITHDRAWAL RESTRICTIONS ON SECTION 403(B)
PLANS AND UNDER THE TEXAS OPTIONAL RETIREMENT PROGRAM
Registrant, a separate account of Allmerica Financial Life Insurance and
Annuity Company ("Company"), states that it is (a) relying on Rule 6c-7
under the 1940 Act with respect to withdrawal
<PAGE>
restrictions under the Texas Optional Retirement Program ("Program") and
(b) relying on the "no-action" letter (Ref. No. IP-6-88) issued on November
28, 1988 to the American Council of Life Insurance, in applying the
withdrawal restrictions of Internal Revenue Code Section 403(b)(11).
Registrant has taken the following steps in reliance on the letter:
1. Appropriate disclosures regarding the redemption withdrawal
restrictions imposed by the Program and by Section 403(b)(11) have
been included in the prospectus of each registration statement used in
connection with the offer of the Company's variable contracts.
2. Appropriate disclosures regarding the redemption withdrawal
restrictions imposed by the Program and by Section 403(b)(11) have
been included in sales literature used in connection with the offer of
the Company's variable contracts.
3. Sales Representatives who solicit participants to purchase the
variable contracts have been instructed to specifically bring the
redemption withdrawal restrictions imposed by the Program and by
Section 403(b)(11) to the attention of potential participants.
4. A signed statement acknowledging the participant's understanding of
(I) the restrictions on redemption withdrawal imposed by the Program
and by Section 403(b)(11) and (ii) the investment alternatives
available under the employer's arrangement will be obtained from each
participant who purchases a variable annuity contract prior to or at
the time of purchase.
Registrant hereby represents that it will not act to deny or limit a
transfer request except to the extent that a Service-Ruling or written
opinion of counsel, specifically addressing the fact pattern involved and
taking into account the terms of the applicable employer plan, determines
that denial or limitation is necessary for the variable annuity contracts
to meet the requirements of the Program or of Section 403(b). Any transfer
request not so denied or limited will be effected as expeditiously as
possible.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the Investment
Company Act of 1940 the Registrant certifies that it meets all the
requirements for effectiveness of this Registration Statement pursuant to
Rule 485(b) under the Securities Act of 1933 and has duly caused this
Registration Statement to be signed on behalf by the undersigned, thereto
duly authorized, in the City of Worcester, and Commonwealth of Massachusetts,
on the 26th day of January, 1998.
ALLMERICA SELECT SEPARATE ACCOUNT OF
ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
By: /s/ ABIGAIL M. ARMSTRONG
---------------------------------
Abigail M. Armstrong, Secretary
Pursuant to the requirements of the Securities Act of 1933, this Amendment to
the Registration Statement has been signed by the following persons in the
capacities and on the date indicated.
Signatures Title Date
- --------- ----- ----
/s/ John F. O'Brien Director and Chairman of January 26, 1998
- ---------------------- the Board
John F. O'Brien
/s/ Bruce C. Anderson Director
- ----------------------
Bruce C. Anderson
/s/ Robert E. Bruce Director
- ----------------------
Robert E. Bruce
/s/ John P. Kavanaugh Director, Vice President and
- ---------------------- Chief Investment Officer
John P. Kavanaugh
/s/ John F. Kelly Director, Vice President and
- ---------------------- General Counsel
John F. Kelly
/s/ J. Barry May Director
- ----------------------
J. Barry May
/s/ James R. McAuliffe Director
- ----------------------
James R. McAuliffe
/s/ Edward J. Parry III Director, Vice President and
- ---------------------- Chief Financial Officer
Edward J. Parry III
/s/ Richard M. Reilly Director, President and
- ---------------------- Chief Executive Officer
Richard M. Reilly
/s/ Eric A. Simonsen Director and Vice President
- ----------------------
Eric A. Simonsen
/s/ Phillip E. Soule Director
- ----------------------
Phillip E. Soule
<PAGE>
EXHIBIT TABLE
Exhibit 9 Consent and Opinion of Counsel
Exhibit 10 Consent of Independent Accountants
<PAGE>
January 26, 1998
Allmerica Financial Life Insurance and Annuity Company
440 Lincoln Street
Worcester MA 01653
RE: ALLMERICA SELECT SEPARATE ACCOUNT OF
ALLMERICA FINANCIAL LIFE INSURANCE AND ANNUITY COMPANY
FILE #'S: 33-47216 AND 811-6632
Gentlemen:
In my capacity as Counsel of Allmerica Financial Life Insurance and Annuity
Company (the "Company"), I have participated in the preparation of the
Post-Effective Amendment to the Registration Statement for the Allmerica Select
Account on Form N-4 under the Securities Act of 1933, with respect to the
Company's qualified and non-qualified variable annuity products.
I am of the following opinion:
1. The Allmerica Select Separate Account is a separate account of the Company
validly existing pursuant to the Delaware Insurance Code and the
regulations issued thereunder.
2. The assets held in the Allmerica Select Separate Account are not chargeable
with liabilities arising out of any other business the Company may conduct.
3. The contracts, when issued in accordance with the Prospectus contained in
the Registration Statement and upon compliance with applicable local law,
will be legal and binding obligations of the Company in accordance with
their terms and when sold will be legally issued, fully paid and
non-assessable.
In arriving at the foregoing opinion, I have made such examination of law and
examined such records and other documents as in my judgment are necessary or
appropriate.
I hereby consent to the filing of this opinion as an exhibit to the
Post-Effective Amendment to the Registration Statement of the Allmerica Select
Separate Account on Form N-4 filed under the Securities Act of 1933.
Very truly yours,
/s/ Sylvia Kemp-Orino
Sylvia Kemp-Orino
Assistant Vice President and Counsel
<PAGE>
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the use in the Statement of Additional Information
constituting part of this Post-effective Amendment No. 14 to the Registration
Statement on Form N-4 of our report dated February 3, 1997, relating to the
financial statements of Allmerica Financial Life Insurance and Annuity Company,
our report dated February 5, 1996 relating to the statutory basis financial
statements of Allmerica Financial Life Insurance and Annuity Company and our
report dated March 26, 1997 relating to the financial statements of Allmerica
Select Separate Account of Allmerica Financial Life Insurance and Annuity
Company, all of which appear in such Statement of Additional Information. We
also consent to the reference to us under the heading "Experts" in such
Statement of Additional Information.
/s/ Price Waterhouse LLP
Price Waterhouse LLP
Boston, Massachusetts
January 30, 1998
